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Scientific Essay from the year 2015 in the subject Economics - Foreign Trade Theory, Trade Policy, , course: Economics, language: English, abstract: Developing countries' surest route to sustained poverty reduction is economic growth. Policymakers encourage foreign direct investment (FDI) for the enhancement of productivity in-country and the promotion of economic development, through the 'multiplier' effect. It is generally agreed among researchers that local conditions (absorptive capacities) are important factors contributing to the effect of FDI on economic growth. FDI has contributed to output growth in Nigeria, especially in the petroleum sector. However, the efficacy of FDI in generating the desired growth may be limited by the level of infrastructural and human capital development in Nigeria.