External Debt, Exchange Rate, Foreign Investments and Economic Growth Inter-Relationships Further Empirical Evidence from Nigeria

It is crystal clear for countries to thrive and for industries to compete with themselves there is need for product diversification, these create a niche for foreigners to contribute both in capital and technical skill, this will further lead to exchange of currency across borders and it will also facilitate growth in the receiving country. This propelled this paper on external debt, exchange rate, foreign investments and economic growth inter-relationships. Further empirical evidence from Nigeria, 1981-2018. The study made use of autoregressive distributed lag bond test (ARDL) as the statistical technique. It was revealed that foreign investment to total exports ratio has a positive and an insignificant relationship with external debt to total exports ratio, the result agreed with the earlier anticipated apriori expectation, but the insignificant relationship arises as a result of instability identified between naira to other foreign currency, it also arises as a result of the increase identified with prices of goods and services in the country. It does appear that there is need for foreign investors to participate in the country and for this to take place policies on investment friendly environment will need to be reviewed and corrective measures that will improve the policy will need to be put in place this environment will stimulate and boost foreign participants which will in the long run boost the value of the local currency and make the foreign market of the country to be competitive.