+234 813 0686 500
+234 809 3423 853
+234 813 0686 500


  • Type: Project
  • Department: Political Science
  • Project ID: POL0280
  • Price: ₦3,000 ($20)
  • Chapters: 5 Chapters
  • Pages: 62 Pages
  • Format: Microsoft Word
  • Views: 689

For more Info, call us on
+234 8130 686 500
+234 8093 423 853


         Investors’ decisions and actions globally are influenced significantly by the dictates of self-interest which suggests that capital, not only be channeled to high-yielding economic sectors but also to those that are ostensibly quick yielding economies.  On balance therefore investors would spun profitable opportunities characterized by extreme competitions, market glut, unfavorable regulation, long gestation periods and opt instead for investments that yield high returns within the shortest  time possible.  Base on this view, investors generally migrate from one economy to another in search of better investment climate and higher returns.

          This form of capital movement results in the creation of a typical investment called Foreign Direct Investment.  In the opinion of Jomo (1988) Foreign Direct Investment can be explained to represent the flow of tangibles from a country abroad of capital, equipment and other production and processing facilities into a host economy.  It is also defined as a long term investment reflecting a lasting interest and control by a foreign direct investors (or parent enterprise), of an enterprise entity residents in an economy other than that of the foreign investor (IMF, 1993).

          Foreign Direct Investment is widely thought to bring with it into the host country a bundle of productive assets including long term foreign capital, entrepreneurship, technology skills, innovative capacity and managerial, organizational and export marketing know-how.  The distinctive feature of Foreign Direct Investment is that it involves not only a transfer of resources but also the acquisition of control. i.e the subsidiary does not simply have a financial obligation to the parent company, if is part of the same organizational structure

(Krugman and Obstfeld,2000).  Foreign Direct Investment involves much more than the simple transfer of capital or the establishment of a local factory in a developing nation.  Multinational carry with them technologies of production, tastes and diverse business practices including cooperative arrangement, marketing restrictions advertising and the phenomenon of transfer pricing.  They engage in a range of activities, many of which have little to do with the development aspirations of the countries in which they operate. (Todaro, 2000).

          Temle (1999) demonstrates that technical changes and technological learning which are significant components of Foreign Direct Investment represent important determinants of economic growth.  Furthermore, it is relevant to add that technology is generated by Research and Development (R&D), most of which is conducted in industrialized countries making technology transfer very important for economic prosperity of countries with weak Research and Development (R&D) and innovation capacities.

Political and economic policies bothering on FDI assist immensely in stimulating the economic growth of the recipient nations Chang(2001) believes that in the 16th and 17th centuries deliberate transfer policies of King Henry viii made Britain a leading manufacturing nation.  Among the hotly debated issues in development, economics is the role played presently by FDI in export performance of developing countries such as the case of East and South East Asian country.

          FDI flows to Africa have expanded only marginally and are still at levels behind those of other developing countries.  The region accounted for less than 1% of the global total FDI inflows in the late part of 1990s (Odenthal, 2001) while inflows to developing countries as a group increased from U.S $20billion to U.S

$75billion between 1981 and 1985.  Africa’s share of that inflow dropped (UNCTAD 1999).

          Historically, low rates of FDI inflows to the region and Nigeria in particular are explained by hostile policies, unstable political environment characterized by civil wars and armed conflicts, lack of effective regional integration efforts, poor and deteriorating infrastructure, burdensome regulations or lack of institutional capacity to implement FDI to establish confidence.


In recent time, the government of Nigeria has embarked on economic policies to check the flow of Foreign Direct Investment (FDI) in certain sectors of the economy.  Admittedly, how to achieve rapid economic growth and development through FDI which has proved to be one of the economic problems facing Nigeria.

Therefore, this work tend to analyze critically the following:

i.                The determinants of FDI in emerging economy such as Nigeria.

ii.              The impact of Foreign Direct Investment on the growth of Nigerian economy.

iii.            To analyze the increase in local wage cost through payment of wages by

Multinational Corporations (MNC) affiliates.

iv.            To examine the importation of capital intensive and cost dates technology.


The following research questions have been designed as a guild to elicit reliable information for this study.  They are:

v  To which extent will the Nigerian economy depend on the foreign capital inflow? 

v  How friendly is Nigeria’s trade policy and environment to FDI?

v  How have the Nigerian industries been stimulated by foreign technology?

v  Does intellectual poverty production increase the attractiveness of FDI?

v  To which extent has the FDIs in Nigerian led to the diversification of Nigerian economy?

v  Has the rate and volume of FDI into Nigeria increased the consumption expenditure of its citizenry?


The objective of the study includes:

i.                To determine the magnitude of the impact of FDI on economic growth in


ii.              To find out whether or not FDI has a significant impact on the growth of

Nigeria economy.

iii.            To examine the appropriateness and suitability of the nature and quality of foreign technology transfer on Nigeria economy.


The following hypothesis have been formulated to determine the validity and

reliability of the study.

1.Null Hypothesis (Ho): There is no relationship between the volumes of FDI inflows and the growth of the Nigerian economy.

Alternative Hypothesis (H1): There is a relationship between the volume of Foreign Direct Investment inflows and the growth of the Nigerian economy.


           Technological adoption by any country is a function of local technological capabilities which in turn are largely determined by the quality and volume of

Research and Development being sponsored by foreign or parent companies.  Thus, FDI appears to substitute local innovation as the technology recipient firms in the n host country becomes mere in the global chain of affiliates subject to central decision making.  Therefore, this study is designed to assist the policy maker in determining the technology transfer through FDI into Nigeria.  Also, the global economic circumstances permit that national economics should be integrated into global economic network and this is only possible through effective capital transfers appraised and monitored through research of this nature.

          There is also need to meet challenges post by foreign product domination of internal market and this is supported by research work such as this study.  The study can also be relevant in universities and research centers in Nigeria libraries, National Bureau of Statistic and investors will find this study highly useful.


          The study is restricted within the confines of the impact of Foreign Direct Investment in the growth of Nigeria economy.  The time frame covered by the study is between 1990-2011.  The topic is chosen because of the importance of FDI in the growth of the Nigerian economy since independence.


In the course of this study, many problems were encountered and most of them centered on time, finance, dearth of data and poor attitude of respondents.  The impact of time constraints were enormous because of the nature of programme.  Financing of a project of this nature is always costly and this has been a major constraints because cost of sourcing materials, assemblage of data obtained, collected and printing constitute large chuck of fund.  Also, dearth of data and poor attitude of respondents affected the early completion of the study many business organization in Nigeria do not make public their data bank for reach studies and this affects the quality of the information generated from either National Bureau of Statistics (NBS) and those released by their personal.

For more Info, call us on
+234 8130 686 500
+234 8093 423 853

Share This
  • Type: Project
  • Department: Political Science
  • Project ID: POL0280
  • Price: ₦3,000 ($20)
  • Chapters: 5 Chapters
  • Pages: 62 Pages
  • Format: Microsoft Word
  • Views: 689
Payment Instruction
Bank payment for Nigerians, Make a payment of ₦ 3,000 to

Account Name Obiaks Business Venture
Account Number 0211074565

Bitcoin: Make a payment of 0.0003 to


btc wallet
Copy to clipboard Copy text

Leave a comment...


    Type Project
    Department Political Science
    Project ID POL0280
    Price ₦3,000 ($20)
    Chapters 5 Chapters
    No of Pages 62 Pages
    Format Microsoft Word

    Related Works

    AN ASSESSMENT OF THE IMPACT OF FOREIGN DIRECT INVESTMENT ON NIGERIAN ECCONOMIC GROWTH (1990-2011)    CHAPTER ONE 1.0    INTRODUCTION 1.1    BACKGROUND OF THE STUDY            Investors’ decisions and actions globally are influenced significantly by the dictates of self-interest which suggests that capital, not only be channeled... Continue Reading
    ABSTRACT This study assess the impact of Foreign Direct Investment in Nigerian economic growth over the period of 1990-2011. Data from Central Bank of Nigeria (CBN) Statistical Bulletin was used. The Ordinary Least Square (OLS) technique was specified and used to examine the relationship between the variables which includes the Gross Domestic... Continue Reading
    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,... Continue Reading
    ABSTRACT The study was carried out to determine the influence of Foreign Direct investment (FDI) and Domestic investment (DI) on the economic growth of Nigeria. The study employed Augmented Dickey-Fuller test to test for time series property of the data. Johansen co-integration was also examined and consequently error correction model was... Continue Reading
    ABSTRACT 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... Continue Reading
    ABSTRACT Foreign Direct Investment (FDI) provides with much needed capital investments with a view to achieving economic growth in Nigeria. Foreign direct investment is a leading role in developing countries of Africa giving rise to a widespread belief among policy makers that foreign direct investment has enhanced growth and promotes development... Continue Reading
      CHAPTER ONE 1.0       AN OVERVIEW This chapter will discuss mainly about the introduction, background of the study, problem statement, objectives, scope of study, significant, limitations involved and concern on the definition of key terms used in this research study. 1.1... Continue Reading
    ABSTRACT  The study of the nature involves a lot of deep research and understanding of the factors, which creates the effects on the subject matter.  Primarily, these factors were more economical than managerial as the case may be, on the understanding that this research work is being casual out under a management setting or department. Just as... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1 BACKGROUND TO THE STUDY As a result of increases in the wave of globalization and liberation since the 1980’s the penetration, banking and discriminating of barrier to trade investment capital flows and technology movements across national frontiers have... Continue Reading
    CHAPTER ONE INTRODUCTION 1.1       Background of the Study Various classifications have been made on Foreign Direct Investment (FDI). For instance, FDI has been described as investment made so as to acquire a lasting management interest (for example, 10 percent of voting stock) and at least 10 percent of equity shares in an enterprise... Continue Reading
    Call Us
    Get this work
    whatsappWhatsApp Us