ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013)

Format: MS WORD | Chapter: 1-5 | Pages: 75 | 1631 Users found this project useful | Price NGN5,000

ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013)

ABSTRACT

This work investigates the determinants and impact of Foreign Direct Investment (FDI) on Nigerian economy. 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 determinants and 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 pre-investment laws and implement tax concession policy so as to attract FDI to these sectors.

CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Theoretical arguments abound on the role of foreign direct investment (FDI) in an economy which suggests that foreign direct investment provides an important source of foreign exchange earnings needed to augment inadequate finance (savings) for domestic investments. Also, FDI provides the import substitution that would help to reduce the import bills thereby conserving the foreign reserve while investment in export promotion industries will increase the country’s foreign exchange earnings (Todaro, 1994).According to the neoclassical school of thought, FDI fills the gap between targeted government revenue and locally raised taxes by taxing multinational corporations (MNCS), government are able to realize financial resources for developmental purposes. Hansen and Rand (2006), stressing the role of FDI shows that it has been a good source of improving efficiency of the productive sector through stimulation of economic growth and job creation.

Flows of foreign capital to developed and developing nations have continued to be a topical issue in literature. However, given its key role as driver in fostering growth, such capital had almost dried up between 1972 and 1985 in Nigeria because of public policies introduced by government which were considered to be anti foreign direct investment. The policy drive resulted to debt crisis as government and private investors embarked on massive foreign loan (Anyanwu; 1998).However with the introduction of SAP in 1986, Nigeria began to receive once more substantial flow of foreign investment capital.

DOWNLOAD THE COMPLETE PROJECT

Project information

Project Price

NGN5,000
Number of Pages

75
Number of Chapters

1-5
Additional Content

Abstract, Table of Content & Questionnaire

ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013)

Not The Topic You Are Looking For?

For Quick Help Chat with Us Now!

+234 813 292 6373

+233 55 397 8005

Search for your project topic

HOW TO GET THE COMPLETE PROJECT ON ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013) INSTANTLY

Click on the Download Button above.
Select any option to get the complete project immediately.
Chat with Our Instant Help Desk on +234 813 292 6373 for further assistance.
All projects on our website are well researched by professionals with high level of professionalism.

Here's what our amazing customers are saying

Uduak From Uniuyo

IProjectMaster is the best project site for students. Their works are unique and free of plagiarism!

Excellent

Emmanuel Essential

Kogi state University

I actually took the risk,you know first time stuff But i was suprised i received as requested. I love you guys 🌟 🌟 🌟 🌟

Very Good

Abdul Mateen Iddrisu

UDS

At first I taught is a site full of fraudsters until I saw my project in my Gmail after my payment.. THANK YOU IPROJECTMASTER and May God the almighty bless u guys abundantly

Excellent

Merry From BSU

I am now a graduate because of iprojectmaster.com, God Bless you guys for me.

Excellent

Adam Alhassan Yakubu

UDS

Excellent work and delivery , I promise to share my testimonies everyone in need of this kind of work. You're the best

Excellent

Dau Mohammed Kabiru

Kaduna State College of Education Gidan Waya

This is my first time..Your service is superb. But because I was pressed for time, I became jittery when I did not receive feedbackd. I will do more business with you and I will recommend you to my friends. Thank you.

Very Good

Abraham Ogbanje

NATIONAL OPEN UNIVERSITY OF NIGERIA

At first I was afraid.. But I discovered they are legit. I will bring more patronize

Very Good

Samuel From Ajayi Crowther University

You guys just made life easier for students. Thanks alot iprojectmaster.com

Excellent

Stancy M

Abia State University, Uturu

I did not see my project topic on your website so I decided to call your customer care number, the attention I got was epic! I got help from the beginning to the end of my project in just 3 days, they even taught me how to defend my project and I got a 'B' at the end. Thank you so much iprojectmaster, infact, I owe my graduating well today to you guys...

Excellent

Ibrahim Muhammad Muhammad

Usmanu danfodiyo university, sokoto

It's a site that give researcher student's to gain access work,easier,affordable and understandable. I appreciate the iproject master teams for making my project work fast and available .I will surely,recommend this site to my friends.thanks a lot..!

Excellent

View All Reviews

FREQUENTLY ASKED QUESTIONS

How do I get this complete project on ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013)? Simply click on the Download button above and follow the procedure stated.
I have a fresh topic that is not on your website. How do I go about it?
How fast can I get this complete project on ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013)? Within 15 minutes if you want this exact project topic without adjustment
Is it a complete research project or just materials? It is a Complete Research Project i.e Chapters 1-5, Abstract, Table of Contents, Full References, Questionnaires / Secondary Data
What if I want to change the case study for ANALYSIS OF DETERMINANTS AND IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECONOMY (1981-2013), What do i do? Chat with Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately
How will I get my complete project? Your Complete Project Material will be sent to your Email Address in Ms Word document format
Can I get my Complete Project through WhatsApp? Yes! We can send your Complete Research Project to your WhatsApp Number
What if my Project Supervisor made some changes to a topic i picked from your website? Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately
Do you assist students with Assignment and Project Proposal? Yes! Call Our Instant Help Desk Now: +234 813 292 6373 and you will be responded to immediately
What if i do not have any project topic idea at all? Smiles! We've Got You Covered. Chat with us on WhatsApp Now to Get Instant Help: +234 813 292 6373
How can i trust this site? We are well aware of fraudulent activities that have been happening on the internet. It is regrettable, but hopefully declining. However, we wish to reinstate to our esteemed clients that we are genuine and duly registered with the Corporate Affairs Commission as "PRIMEDGE TECHNOLOGY". This site runs on Secure Sockets Layer (SSL), therefore all transactions on this site are HIGHLY secure and safe!