THE IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIA ECONOMIC GROWTH (1980 – 2010)(ECONOMICS PROJECT TOPICS AND MATERIALS)
ABSTRACT
The study examined the impact of foreign direct investment (FDI) in Nigeria over the period 1980 to 2010. The study employed multiple regressions in analysis, using the ordinary least square (OLS) regression technique. The result at this revealed that FDI impacted positively on the growth of the Nigerian economy over the period under study. Based on this, the study recommended the provision of adequate infrastructure and policy framework that will be conducive for doing business in Nigeria, so as to attract the inflow of FDI necessary to stimulate growth.
CHAPTER ONE:
1.3 BACKGROUND OF STUDY:
Since the attachment of independent in 1960 various policies of the Nigerian government have been geared essentially towards promoting the growth and development of the Nigerian economy by influencing the trends of gross fixed domestic investment or indirectly through policies aimed at stimulating the flow of foreign 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 has been argued to be the most growth stimulation source of foreign 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 on host economies. Those that are of the view that foreign direct investment produce positive effects on host economies argue that some of the benefits are in the form of externalities and the adoption of foreign technology, employers training and the introduction of new process by the foreign firms according to Ayadi, (2002) foreign direct investment especially when it flows to a high risk area of new firms where domestic resource is limited.
The first national development plan was launched for industrial trade off and developments however as foreign industrial investors were. Rather apprehensive of the nascent independent administration efforts had to be made not only to allay their fears of nationalization but also attract additional foreign investment through joint venture with individuals or the state. However Nigeria economy has been one of the important destination points of foreign direct investment in sub-Saharan Africa. The amount of foreign direct investment inflow into Nigeria according to ayadi (2002) has reached US $ 2.23 billion in 2003 and it rose to US $ 5.31 billion in 2004 (9.13% increase) the figure rose again to US $9.92 billion (87%increasing) in 2005. The figure however declined slightly to US $ 9.44 billion in 2006.
Nigeria is argued to be buoyantly blessed with enormous mineral and human resource but believed to be highly risky market for investment. Also decade of bad governance have almost crippled. The national economy with corruption and misappropriation is of fund becoming the norm rather than expectation. What is the way out of this economic state? Many experts accepted that foreign direct investment. Is a verifiable booster to kick start the economy. According to Odozi (1995) foreign investment appears to be the most. Crucial component of capital inflows and Nigeria should seek to attract in light of her current economic circumstance. Some scholars are of the view that Nigeria. Is in need of foreign direct investment as a verifiable boaster of the Nigerian economy while others are of the view that foreign direct investment is a form of neo- colonialism to what extent. Has foreign direct investment helped. The economic growth in Nigeria.
