ABSTRACT
This study set out to empirically examine the effect of Foreign Direct Investment (FDI) on the economic growth in Nigeria between for 1981-2013. FDI has become a debatable and topical issue across the globe because of its key role in bridging the savings gap in Least Developed Countries (LDCs). Theoretical argument that savings translate to investment is well documented in literature. Two fundamental issues concerning the potential importance of FDI in LDCs development process has remain unresolved. Firstly, does FDI really contribute to attainment of economic growth in host country as argued by the proponents of the modernization theory? Secondly, as the dependency theorists assert that FDI, although may spur short term economic growth, will generate and accelerate internal distortions that will it ultimately depress or even retard the host country’s economic growth? Based on these arguments, the study investigated the impact of foreign direct investment on Nigerian economy by analyzing in addition the composition and trend of FDI inflow to Nigeria from 1981 to 2013. Using the dual gap and Solow growth models as theoretical framework, the quantile regression analysis was used to examine the behavior of the variables of interest; such as fiscal deficit, openness, investment in infrastructure, net foreign indebtedness and external reserve. From the result, using the two models; all the variables were statistically significant at upper quantiles which implies that high GDP motivates inflow of FDI to Nigeria at different levels (1%, 5% and 10%) except external reserve which is not statistically significant in q95 with coefficient value of 2.530. In addition, on the impact of FDI, the result revealed that FDI is not statistically significant in q5, q25,and q50 with coefficient values of 2.0351, 1.3403 and -0.9472 respectively. The result in the last two quantiles (q75 and q95) shows that FDI is statistically significant with coefficient values of -1.1307 and -8.0836 at 5% level of significance. Finally, it was found that FDI inflows are mainly in the mining and manufacturing sectors as shown by the composition and trend analysis, others sectors such as agriculture, building and constructions are yet to benefit from the FDI inflows significantly. Based on these key findings, it is therefore recommended that government should relax preinvestment laws and implement tax concession policy so as to attract FDI to these sectors.
Chapter One: Introduction
1.1 Background of the Study
Community development policies are pivotal in addressing poverty in rural...
ABSTRACT
The study was designed to provide information to organisations and establishments in either th...
Abstract
In today’s knowledge on economy, firm performance and competitive advantage are derived...
Background of the Study
Architectural visualization is an essential tool for design, planning, and communication in the co...
Cancer is one of the leading causes of morbidity and mortality worldwide. Acc...
Background of the Study:
Yoga and meditation are ancient practices that have gained widespread recognition for their benefi...
Background of the Study
Financial inclusion is a key factor in poverty reduction, particularly in developing economies like Nigeria, wher...
Background of the Study
Healthcare infrastructure forms the backbone of effective healthcare service delivery. Government funding is a cr...
Background of the Study
The digital media and entertainment industry has experienced significant growth...
ABSTRACT
This study was carried out to examine product planning distribution and management w...