Background of the Study:
The combination of GDP growth and FDI inflows is widely considered pivotal for shaping income distribution patterns in Nigeria. While GDP growth signals overall economic expansion and increased production, FDI brings in not only capital but also technological advancements and managerial expertise. Together, these factors have the potential to generate employment and improve income levels across different sectors of the economy (Akinyele, 2023). However, there is growing concern that the benefits of such combined growth are not evenly distributed among the population. Studies suggest that while certain urban and industrial regions may reap significant rewards, rural and underdeveloped areas might not experience the same level of benefit, thereby exacerbating income inequality (Babatunde, 2024). This study seeks to evaluate the extent to which the synergy between GDP and FDI growth influences national income distribution, analyzing policy measures, sectoral impacts, and regional disparities. The discussion is anchored on recent fiscal reforms and economic policies aimed at ensuring that growth translates into broad-based income improvement (Chinaza, 2025).
Statement of the Problem:
Despite overall economic growth driven by GDP expansion and increased FDI, Nigeria continues to experience significant income inequality. The anticipated positive effects of combined economic indicators on income distribution have not materialized uniformly across all regions and socio-economic groups. Structural challenges, regional disparities, and policy implementation gaps have hindered the equitable distribution of income gains (Ibrahim, 2023). This study aims to investigate whether the growth in GDP and FDI is effectively translating into improved income distribution or if targeted interventions are required to address the prevailing disparities (Okeke, 2024).
Objectives of the Study:
Research Questions:
Research Hypotheses:
Significance of the Study:
This study is significant as it provides insights into how the interplay between GDP growth and FDI inflows affects income distribution in Nigeria. By identifying regional disparities and structural challenges, the research offers evidence-based policy recommendations aimed at promoting inclusive growth and reducing income inequality (Obi, 2024).
Scope and Limitations of the Study:
This study is limited to evaluating the direct impact of combined GDP and FDI growth on national income distribution in Nigeria and does not consider other socio-economic variables.
Definitions of Terms:
• GDP Growth: The increase in economic output within Nigeria.
• FDI Growth: The rate of increase in foreign direct investments in Nigeria.
• Income Distribution: The manner in which a country’s total income is divided among its population.
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