FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON THE DEVELOPMENT OF NIGERIAN ECONOMY (1990 – 2010)

ABSTRACT

Generally, policies and strategies of Nigerian government towards foreign direct investment are shaped by two principal objectives of the desire for economic independence and the demand for economic development. Multinational corporations are expected to bring into Nigeria foreign capital in the form of technical skills, entrepreneurship, and technology and investment fund to boost economic activities thereby raising the standard of living in Nigeria.

The main issues in this paper relates to understanding the effects of foreign direct investment on the Nigerian economy as well as our ability to attract adequate amounts, sufficient enough to accelerate the price of our economic growth and development. From related research and studies, it was revealed that multinational corporations are highly adaptive social agents and therefore, the degree to which they can help in improving economic activities through FDI will be heavily influenced by the policy choice of the host country.

Therefore this research work examines FDI and development of the Nigerian economy from 1990 / 2010, a period o 20 years, using an ordinary least square method of regression, the trade o relationship between FDI and GDP in Nigeria was examined, the result showed that FDI has a positive relationship with GDP and a positive change in FDI will increase GDP by 50.594 and also the nature and magnitude of FDI can be determined.

CHAPTER ONE

1.1          BACKGROUND OF THE STUDY

Since Nigeria got her independence in 1960, it has created policies which are geared towards promoting the Nigerian economic growth and development by influencing domestic investment or indirectly policies which are aimed at stimulating the flow of finance in any growing economy. This is so given that in the literature there are divergent views on the nature of effects of foreign direct investment. It has been argued to be the most growth stimulation sources of foreign finance in any growing economy. There are divergent views on the nature of foreign direct investment on host economies. There are views that foreign direct investment produce positive effects on host economies and they argue that some of the benefit are in the form of externalities and adoption of foreign technology. Employers training and introduction of new process by the foreign firms.

Developing countries in Africa, Asia and Latin America have come increasingly to see that foreign direct investment is a source of economic development, modernization, income growth and employment and poverty reduction. These...

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Item Type: Project Material  |  Attribute: 58 pages  |  Chapters: 1-5

Format: MS Word  |  Price: N3,000  |  Delivery: Within 30Mins.

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