Foreign Direct Investment

Foreign Direct Investment and Economic Growth in Nigeria Folorunso Sunday Ayadi, University of Lagos, Nigeria funso123@yahoo.com Most sparing rationale for granting special incentives for attracting FDI is take in on the belief that FDI bridges the idea gaps among puritanic and the poor nations in addition to the generation of technological transfers and spillovers. empirical literature however finds controversial, the make of FDI on productivity growth. This dulcet theme contributes to the existing studies by applying the rhos rank correlation and cause test in exploring the possible links between FDI and economic growth in Nigeria. We determined the contributory factors to FDI and by trial and error tried the endogeniety theory of FDI. The study concluded that the link between FDI and economic growth in Nigeria is very weak. However, FDI is institute to be relate to export growth while human energy build is found to be related to FDI flow. The endogeneity theor y of FDI is found surreal in Nigeria. The study therefore recommends infrastructural development, human cleverness structure and strategic policies towards attracting FDI flow. INTRODUCTION Various classifications have been ramp up of immaterial direct enthronisation (FDI).

For instance, FDI has been described as investment made so as to acquire a immutable focussing interest (for instance, 10% of voting stocks) and at least 10% of equity shares in an enterprise operating in some other country other than that of investors country (Mwillima, 2003; human Bank, 2007). Policymakers believe that unconnected direct investment (FDI) produces positive effects on emcee economies. Some of these benefits are in the orchestrate o! f externalities and the adoption of strange technology. Externalities here can be in the form of licencing agreements, imitation, employee reading and the introduction of new processes by the impertinent firms (Alfaro, 2006). According to Tang, Selvanathan and Selvanathan (2008), international enterprises (MNEs)...If you want to get a honorable essay, order it on our website: OrderEssay.net

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