AN EVALUATION OF FOREIGN DIRECT INVESTMENT AS A STRATEGY FOR SUSTAINABLE ECONOMIC GROWTH IN NIGERIA.

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Date
2007-03
Authors
Safiya, USMAN.
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Abstract
ABSTRACT Foreign Direct Investment (FDI) is a global term that is increasingly growing in popularity among nations of the world. The attraction of FDI has been a major feature in the economic and political agenda of developing countries for its inflow is a sure way of ensuring steady economic growth in a nation’s economy. Devising strategies and policies for the attraction of FDI has over the years grown in sophistication. This is because a lot of countries are competing for global FDI and so every nation must put together a mix that would ensure that investors get the best deal and protection for their capital. FDI can provide the impetus to uplift an economy which has a resounding effect on other economic activities, especially in a developing nation. It can safely be said that steady FDI inflow can create wealth in both developed and developing countries because it provides employment, improves skills, improves infrastructure, social amenities and general well being of a people. This study shows that dependency theory is limited by its failure to account for the fact that many developing economies of the world that depended on FDI have grown faster than ever before due to more FDI net flow. This study utilizes primary data obtained through the use of questionnaires and personal interviews as well as data obtained from World Investment Annual Reports and Account Books, NIPC and CBN publications and other related literatures to provide a working guide for analytical discussions. The study shows that there are strong indications that the Nigerian economy is desirous of FDI and have joined the team of developing nations that are strategizing its systems for effective attraction of FDI. It also shows that there are constraints to the attraction of FDI which needs to be addressed before meaningful progress can be made. These constraints are 11 being managed by the leading investment promotion outfit of the country, the Nigerian Investment Promotion Commission. However, the study recommends that there must be proper funding of NIPC, improvement in infrastructure, proper incentives, policies and transparency for the effective performance of FDI in Nigeria.
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DEPARTMENT OF BUSINESS ADMINISTRATION FACULTY OF ADMINISTRATION AHMADU BELLO UNIVERSITY ZARIA.
Keywords
EVALUATION,, FOREIGN,, DIRECT,, INVESTMENT,, STRATEGY,, SUSTAINABLE,, ECONOMIC,, GROWTH,, NIGERIA.
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