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The Impact Of Foreign Direct Investment On Economic Growth In Nigeria
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1.2 STATEMENT OF THE PROBLEM
Interestingly
there are some arguments about whether FDI is really beneficial and how
significant this benefit is to economic growth some critical proponents
have said that in the cost of benefit analysis context, the less
accuring to the host countries as a result of FDI outweighs the
guaranteed benefit. Typically, multinational corporations in developed
countries have actually become a threat to host countries as they are
now subversive and exploitative.
Also, multinational corporations are
in reality the representation of the global corporation around
countries as they see the state as the only unit of analysis in
international relation. These arguments above and indeed many more have
necessitated a critical look and finding out of whether the often
acclaimed benefits of FDI are significant or not.
Dependency theorist
has also focused on how FDI of Multinational Corporation distorts
developing nation economies. In the view of these scholars, distortion
includes the crowding out of national firms rising unemployment related
to the use of capital intensive technology and a marked loss of
political sovereignty. Developing nations generally depend on the
foreign investors for the finance capital that they need. Multinational
corporations carryout much of this foreign investment and many
developing countries also borrow money from international financial
markets by selling bonds, but they usually must pay higher interest rate
(the cost of borrowing). Foreign investors may refuse to buy bonds if
they fear that a government may not be able to repay its loans.
However
the basis of this study is the general notion that FDI investment
generates considerable benefits to the host country by helping to
accelerate her development efforts
1.3 OBJECTIVE OF THE STUDY
The
general and foremost objective of this study is to examine and determine
the impact of Foreign Direct Investment on the Nigerian economic
development specifically. Other aims of this research work includes;
1. Determine whether foreign direct investment has actually been contributing significantly to economic growth in Nigeria.
2. To ascertain the magnitude of the impact of FDI on economic growth in Nigeria.
1.4 RESEARCH HYPOTHENSIS
1. Ho - There is no significant relationship between Foreign Direct Investment and Economic Growth.
2. Ho -Foreign Direct investment and Economic growth are not endogenously determined in Nigeria.
1.5 SCOPE OF THE STUDY.
This
research work focuses on FDI and the economic growth in Nigeria and
covers a period of time between 1980-2010. This period was chosen to
sufficiently determine the long –run impact of FDI on economic growth.
1.6 SIGNIFICANCE OF THE STUDY
This
research will help policy makers‟ access or find out the extent to
which FDI has gone in influencing economic growth in Nigeria. It also
serves as an eye opener for the Nigerian government in the area of FDI
and also a reference material to researchers.
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ABSRACT - [ Total Page(s): 1 ]Foreign Direct Investmemt has been widely described as an indispensible vihicle of economic growth, Variuos reseachers have tried to advocate foreign direct investment as a tool for employment generation, transfer of technological skills, manpower development and increased foreign dexchange earnings.This study was carried out to determine the impact of FDI on economic growth in Nigeria. The study made use of the ordinary least square (OLS) method of estimation in determinig the impact of FDI ami ... Continue reading---
