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The Impact of Foreign Direct Investment on Nigerian Economy (2000-2006)
Content Structure of The Impact of Foreign Direct Investment on Nigerian Economy (2000-2006)
- The abstract contains the research problem, the objectives, methodology, results, and recommendations
- Chapter one of this thesis or project materials contains the background to the study, the research problem, the research questions, research objectives, research hypotheses, significance of the study, the scope of the study, organization of the study, and the operational definition of terms.
- Chapter two contains relevant literature on the issue under investigation. The chapter is divided into five parts which are the conceptual review, theoretical review, empirical review, conceptual framework, and gaps in research
- Chapter three contains the research design, study area, population, sample size and sampling technique, validity, reliability, source of data, operationalization of variables, research models, and data analysis method
- Chapter four contains the data analysis and the discussion of the findings
- Chapter five contains the summary of findings, conclusions, recommendations, contributions to knowledge, and recommendations for further studies.
- References: The references are in APA
- Questionnaire.
Chapter One of The Impact of Foreign Direct Investment on Nigerian Economy (2000-2006)
INTRODUCTION
BACKGROUND TO THE STUDY
In the 1990’s, Foreign Direct Investment (FDI) became the largest single source of external finance for developing countries. In 1997, FDI accounted for about half of all private capital and 40% of local capital flows to developing countries. Following the virtual disappearance of commercial bank lending in 1980’s, policy makers in emerging markets eased restrictions on incoming foreign investment. Many countries even tilted the balance by offering special incentives to foreign enterprises including lower income taxes or income tax holidays, import duty exemptions and subsidies for infrastructure. The rationale for these special treatments often stems from the belief that foreign investment generates externalities in the form of technology transfer. Apart from employment and capital inflows, which accompany foreign investment, multinational activities may lead to technology transfer for domestic firms. If foreign firms introduce new product or processes to the domestic market, domestic firms may benefit from the accelerated diffusion of new technology. In some cases, domestic firms may increase productivity simply by observing the business methods of the foreign firms and the mix of their supply and demand.
Foreign Direct Investment (FDI) has increased tenfold over the last 20 years in developing nations. This kind of investment brings private overseas funds into a country for investments in manufacturing or services. In the years after the Second World War, global FDI was dominated by the United States, as much of the world recovered from the destruction wrought by the conflict. The U.S. accounted for around three-quarters of new FDI (including reinvested profits) between 1945 and 1960. Since that time FDI has spread to become a truly global phenomenon, no longer the exclusive preserve of Organization for Economic Cooperation and Development.
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