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This paper investigates the relationship between
Imports, Exports, Foreign Direct Investment and Gross Domestic Product in
Nigeria. The paper applies the bounds cointegration tests and the Short and
Long Run Dynamics Autoregressive Distributed Lag (ARDL) test for the study
period. The Short and Long Run form of the model indicates that import is
negatively related to Gross Domestic Product but is significant. The Short and
Long Run impact of export on Gross Domestic Product is positive and
significant, indicating that export increased growth of the Nigerian economy by
10.98 percent. Foreign Direct Investment was found to negatively influence
Gross Domestic Product. This finding suggests that foreign Direct Investment is
ineffective in driving actual growth in Nigeria. The findings of this paper
indicate that Nigeria is not yet enjoying the full benefits of Globalization.
This paper recommends that the authorities in Nigeria should formulate and
implement policies that will reduce the level of import into the country and
also undertake policy measures and reforms as well as providing sound
macroeconomic policies, that will create a more stable and conducive
environment for investment and the expansion of economic activity to strive
ensuring that Foreign Direct Investment impacts positively on Economic Growth.
Keywords: Imports,
Exports, Foreign Direct Investment, Gross Domestic Product, Nigeria.