Foreign Direct Investment In Nigeria Essay

The impact of foreign direct investment (FDI) on development is a much-debated topic. Over decades, many international financial institutions, such as the World Bank and the IMF, have increasingly promoted FDI. However, on the other hand, many NGOs, labor unions and civil society groups have emphasized the negative effects of FDI. Thus, to answer this question, we should always consider both of the pros and cons of FDI.

Many governments, especially in industrialized and developed nations, pay very close attention to foreign direct investment because the investment flows into and out of their economies can and does have a significant impact.

The Foreign Direct Investment is stimulated by diverse macroeconomic factors such as the GDP, GDP per capita and also by the political stability of a country. The US is the country, which receives the more FDI in the world; even tough some other countries recently have increased their FDI considerably in term of growth. The overall quality of the infrastructure in the US

Miao Wang (2010), “Foreign direct investment and domestic investment in the host country: evidence from panel study”, Applied Economics, 42, pp. 3711-3721 [Online] Available at: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/detail?vid=4&hid=3&sid=d270c6f2-d2fd-483c-8224-564af5d207e7%40sessionmgr110&bdata=JnNpdGU9ZWRzLWxpdmUmc2NvcGU9c2l0ZQ%3d%3d# (Accessed on 13 November 2012)

First of all, the investment flow into the host country does not produce an immediate effect but accrues benefits over a period of time and the level of the positive effect may vary from country to country. The conditions that FDI faces in the developing countries may slow down the process. The issue is that in order to make use of all benefits, which were discussed earlier, the host country has to have a certain level of education, technology, sufficient openness to trade and appropriate policy regulations. The restrictive policy or insufficient precondition state of economy of the host country will not bring the expected advantages. Moreover, the developing states having a low development level may experience certain disadvantage of the foreign direct

This book provided critical examination of the complex and relationship between foreign direct investment, government policy and economic

Foreign direct investment (FDI) is taken as one of the key factor of rapid economic growth and development. FDI, it is believed to stimulate domestic investment, human capital, and transfers technology. It is associated qualities which causes the faster economic development in the host countries. South Korea, for instance had one of the of the poorest economies during 1960s, but yet

Foreign Direct Investment (FDI) improved from 6.5% of the world’s GDP in 1980 to 31.8% in 2006.

Foreign Direct Investment can have many problems and benefits, a problem with many FDI’s is that its done in the deveoped countries rather than the countries that need FDI plan such as Nigera, Cameroon and Somalia meanwhile when an FDI project is planned in a country and on a large scale then its very benefecial for the countries economy According to data.worldbank.org Foriegn direct investment means that the invester

Ekpo, A.H. (1995) investigated that the element like higher gain from investment, low labor and production cost, political stability, enduring investment climate, official infrastructure facilities and helpful regulatory atmosphere also serve to invite and guard FDI in the host country.Chadee and Schlichting (1997) investigated some of the aspects of FDI in the

AN EMPIRICAL ANALYSIS OF THE IMPACT OF TRADE ON ECONOMIC GROWTH IN NIGERIA MIKE I. OBADAN

After long consideration from our management team, we have decided to introduce a contingent set of initiatives corresponding to “Foreign Direct Investment” in Ethiopia. There has been a considerable rise of FDI opportunities recently within Ethiopia. The following document will discuss; cultural, political, as well as economic trends and patterns that influenced our outlook on FDI into Ethiopia. Moreover, this memo will analyze the potential risks and or barriers to entry, foreign firms could encounter when attempting FDI to Ethiopia. Lastly, our team will aim to outline a proposed plan relating to FDI in Ethiopia for our organizational business partners. There were many sources of information which influenced our “Foreign Direct Investment” conclusion for Ethiopia such as; research on cultural, political, and economic factors ongoing currently in Ethiopia. Additionally, our group is a combination of “Foreign Direct Investment” specialists including two Ethiopian counterparts residing within Ethiopia. Hence, a part of our investment plan includes first-hand direct insider Ethiopian research, conducted from Ethiopia. Accordingly, the strategies developed, by our management team, for FDI in Ethiopia have been formulated using high business acumen and business analytics pertaining to present Ethiopian economic conditions. Seemingly, one will see from these proposed FDI initiatives that Ethiopia is one of the most stable countries for

In general the purpose of conducting this study is to make awareness that how Foreign Direct Investment can influence the economy of any country. This discussion can be held by investigating the following questions:

The other benefit of foreign investment is that it boosts competition in the host economy and, thus, prompts local businesses to seek greater efficiency in their operations. Besides this these multinational firms promote local businesses which supply inputs and or render services needed by them to support their operations. As a result of this, there will be a multiplier effect in terms of creation of employment opportunities.

A Foreign Direct Investment is basically an ownership in a business in a country by a totally different country. Foreign Direct Investment (FDI) plays a very important role in the development of a nation. All countries need FDI’s but in the case of underdeveloped or developing nations FDI is one of the most important aspect, as this kind of investment is required to help sustain the growth of the economy. This inturn helps improving the balance of payments and also helps in generating employment in the country. FDI also helps to improve productivity and use the available resourecs to the maximum.