Implications for Economic Growth - amazonia.fiocruz.br

Implications for Economic Growth Video

Authoritative: Implications for Economic Growth

There are various measures of economic development in which the rate of growth of an economy is one. The economic growth of a country has been acknowledged to be affected by the amount of both foreign and domestic investment available for its socio-economic use.

If you need assistance with writing your essay, our professional essay writing service is here to help! Find out more Foreign Direct Investment can be defined as investment that is made Implications for Economic Growth acquire a lasting interest in an enterprise operating in an economy other than that of the investor, for the purpose of having effective voice in the management of the enterprise. The read more enterprise are referred to as Multinational Enterprises MNEs or Transnational Corporations TNCs and they are defined as firms that own in some way, or controls value — added activities in two or more countries Dunning and Lundan, It can also be defined as an enterprise that controls and manages production establishments plants located in at least two countries which is simply one subspecies of multi- plant firm Caves The FDI go along with technology transfer and capital inflow.

Justification of the study

While FDI may be said to have an adverse impact on some countries in terms of capital flight, it can be theoretically argued that there are favourable impacts on the host country receiving FDI in terms of increased growth and development due to increase in technology and infrastructure. Some studies on the effects of FDI on economic growth have shown various results depending on the country of study and other determinants of FDI. Studies on Nigeria however does not show a common agreement on the influence of FDI on economic growth, therefore FDI would Implications for Economic Growth looked at to determine if it has a positive or negative impact on the economic growth of Nigeria.

The broad objective of this study is to examine the relationship between FDI inflows and economic growth in Nigeria. The reason for its low contribution to GDP may be linked to government policies and political instability and this explains why it is fir a common topic for lectures, discussions as well as issue of primary concern to the general public.

Koss share price

The research work would be limited to the aggregate study of the time series data covering real GDP per capita growth, exports as a percentage of GDP, FDI as a percentage of GDP, exchange rate and gross domestic capital formation in the Nigerian economy from the period to The literature review is the next chapter which shows both the theoretical and empirical review of literatures on FDI and economic growth. Followed by this is the empirical analysis which features Implications for Economic Growth presentation and discussion of results. The study is rounded Gowth in chapter five with summary of findings, policy recommendations, conclusion, and limitation of study with suggestions for further research.

The Nigerian economy was dominated by agriculture and manufacturing sector until the late s after the discovery of crude oil.

Since then, there has been a shift from agriculture to the oil sector. Due to the discovery of oil, there has been a surge of foreign investors in the country.

Navigation menu

Nigeria is richly endowed with natural resources mainly oil and gas, mineral deposits, and vegetation Dinda, By and Implications for Economic Growth, global FDI increased in the s and ever since then, FDI has remained the largest component of net resources flows to developing countries compared to other capital flows. This has actually led some countries to either promote or reduce the extent of FDI by introducing policies to regulate FDI. Recently, some countries in Sub — Saharan Africa have introduced policy measures to promote investment, for example Gambia lowered corporate taxes while some tightened regulatory framework like Nigeria, by adding local content requirement. There has been a lot of research on the relationship between FDI and economic growth although most of these researches were not on Sub — Saharan Africa. Both positive and negative effects have been reported for FDI and economic growth in several countries in previous literatures.

In theory, it is expected that FDI would increase the growth click an economy due to Implications for Economic Growth technology transfer and capital inflow Dunning and Lundan, However, research carried out on this has showed otherwise that there is no common agreement in the linkage between FDI and economic growth.

Blomstrom et al.]