FOREIGN DIRECT INVESTMENT AND ITS IMPACT ON THE DEVELOPMENT OF NIGERIAN ECONOMY (1990 – 2014)

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, and technology and investment fund to boost economic activities thereby raising the standard of living in Nigeria.The main issues in this paper relates to understanding the effects of foreign direct investment on the Nigerian economy as well as our ability to attract adequate amounts, sufficient enough to accelerate the price of our economic growth and development. From related research and studies, it was revealed that multinational corporations are highly adaptive social agents and therefore, the degree to which they can help in improving economic activities through FDI will be heavily influenced by the policy choice of the host country.
Therefore this research work examines FDI and development of the Nigerian economy from 1990 / 2010, a period o 20 years, using an ordinary least square method of regression, the trade o relationship between FDI and GDP in Nigeria was examined, the result showed that FDI has a positive relationship with GDP and a positive change in FDI will increase GDP by 50.594 and also the nature and magnitude of FDI can be determined.

TABLE OF CONTENT
Title page - - - - - - - - - - - I
Certification- - - - - - - - - - II
Dedication- - - - - - - - - - - III
Acknowledgement- - - - - - - - - IV - V
Abstract- - - - - - - - - - - VI - VII
Table of content- - - - - - - - - - VIII - XI

CHAPTER ONE
1.1 Background of the study- - - - - - - - 1 - 3
1.2 Statement of problem- - - - - - - - 3 - 4
1.3 Research questions- - - - - - - - 4 - 5
1.4 Objectives of the study- - - - - - - - 5
1.5 Significance of the study- - - - - - - - 5 - 6
1.6 Research hypothesis - - - - - - - 6 - 7
1.7 Scope and limitation of the study- - - - - - 7

CHAPTER TWO
LITERATURE REVIEW
2.1 Conceptual element- - - - - - - - 8 - 9
2.1.1 Definition of foreign direct investment- - - - - 9 - 10
2.1.2 Foreign direct investment and multinational corporation- - 10 - 12
2.1.3 Gains of foreign direct investment- - - - - - 13 - 15
2.2 Theoretical literature- - - - - - - - 15 - 18
2.2.1 The theory of foreign direct investment- - - - - 18 - 22
2.3 Empirical literature- - - - - - - - 22 - 25
2.3.1 The role of Nigerian investment promotion commission (NIPC) in
the promotion of FDI in Nigeria - - - - - - 25 - 28

CHAPTER THREE
3.0 Methodology- - - - - - - - - 29 - 30
3.1 Model specification- - - - - - - - 30
3.2 Method of evaluation- - - - - - - - 31
3.2.1 Evaluation based on economic criteria- - - - - 31
3.2.2 Evaluation based on statistical criteria- - - - - 31 - 32
3.2.3 Evaluation based on econometric criteria- - - - - 32 - 33
3.3 Justification of the model- - - - - - - 33
3.4 Data sources- - - - - - - - - 34

CHAPTER FOUR
DATA PRESENTATION AND INTERPRETATION OF RESULT
4.1 Presentation of result- - - - - - - - 35 - 36
4.2 Interpretation of result- - - - - - - - 36
4.2.1 Analysis of regression coefficient- - - - - - 36 - 37
4.2.2 Economic a’priori criteria- - - - - - - 37 - 38
4.2.3 Statistical criteria- - - - - - - - - 38 - 41
4.2.4 Econometric test- - - - - - - - - 42 - 46
4.3 Hypothesis testing- - - - - - - - 47 - 48

CHAPTER FIVE
SUMMARY POLICY RECOMMENDATION AND CONCLUSION
5.1 Summary- - - - - - - - - - 49
5.2 Policy recommendation- - - - - - - - 50
5.3 Conclusion- - - - - - - - - - 50 - 51
Bibliography- - - - - - - - - 52 - 54