TRADE OPENNESS AND FOREIGN DIRECT INVESTMENT NEXUS: IMPLICATION FOR SUSTAINABLE DEVELOPMENT IN NIGERIA

Abstract

This study inspects the connection between Nigeria's sustainable development, trade openness,

and foreign direct investment (FDI) from 1990 to 2024. Being a time-series study, econometric

tools such as Johansson co-integration and auto regressive distributed lag model is employed to

analyze the short- and long-term dynamics, of the effect of globalization on sustainable growth

in developing nations. Secondary data is collected from the World Bank Development Indicators,

UNCTAD, and the Central Bank of Nigeria for the analysis. From the results, trade openness

greatly promotes sustainable development by increasing market access and boosting

productivity. Also, FDI is impacted positively by the local economy's ability to absorb new

information. However, these advantages are typically diminished by macroeconomic instability,

especially inflation and currency rate volatility. The study recommends that policies that

increase trade liberalization, and inclusive green investments should be encouraged, for the

benefits of openness and foreign direct investment to be translated into robust and sustainable

growth.