Impact Of Foreign Direct Investment On The Economic Development In Less Developed Nations; Nigeria As A Case Study

ABSTRACT

This study centre on the impact of foreign direct investment on the economic development in less developed nations, using Nigeria as a case study. This has led to the evolution of various schools of thought and several theories, which strive to find solution to the problems of achieving economic, political and socio-cultural growth and development in the modern society. Many schools came up with various theories and principle, which emphasize the mode of achieving the desired increase in productivity. The theoretical framework of this study is Dependency theory. It is the notion that resources flow from a “periphery” of poor and underdeveloped states to a “core” of wealthy states, enriching the latter at the expense of the former. The researcher made use of qualitative method of data collection. It is a secondary method of data collection that makes use of journals, magazines, newspapers, library materials e.t.c. The findings revealed that economic growth is directly related to inflow of foreign direct investment and statistically significant at 5% level. This implies that a good performance of the economy is a positive signal for inflow of foreign direct investment.

CHAPTER ONE

1.1 Background of the Study

The issue of foreign direct investment has been a persistent concern to the developing nations especially Africa. This study centre on the impact of foreign direct investment on the economic development in less developed nations, using Nigeria as a case study. This has led to the evolution of various schools of thought and several theories, which strive to find solution to the problems of achieving economic, political and socio-cultural growth and development in the modern society. Many schools came up with various theories and principle, which emphasize the mode of achieving the desired increase in productivity.

One of the earthiest school of thought that made on attempt to finding a solution towards achieving increased productivity through foreign direct investment is the modernization school which viewpoint is based  on a fundamental principle in economics that economic growth require capital investment modernization theories are derived from the endogenous growth and neoclassical theories which illustrate that foreign priest investment could stimulate economic growth in developing countries.

Modernization theory suggests that since economic growth requires capital investment, foreign direct investment, could serves as the engine to economic growth. This school was championed a German social scientist max Weber, which provided the basic for the modernization. Paradigm developed by Harvard social scientist Talcott parsons.

The purpose of the study is to determine the effect of foreign direct investment on Nigeria and to identity the problem that militates against the growth and development of Nigeria. This study is unique and significance in many ways since social science deals with the study and investigation of human behaviour, this means giving  close attention to how individual in Nigeria on the influence of foreign Direct investment on the  society.

• Problems of the Study

It has been observed that foreign direct investment has not yield effective and efficient productivity in Nigeria.

The problems that arise from the forgoing statements are as following.

1. How has the indigenous people of Nigeria benefited from foreign direct investment?
2. What are the devices adapted by foreign direct investors in the development of Nigeria?
3. What measure can be adopted to develop Nigeria?

1.3 Research Question

Based on the problems of this study, the following research questions have been formulated:-

1. What measures can be taken to improve foreign direct investment in Nigeria?
2. To what extent has foreign direct investment affected the development or underdevelopment of Nigeria?
3. What are the factors that militate against adequate development of Nigeria?

1.4 Objective of the Study

The purpose of this study is to determine the effect of foreign direct investment in developing nation with a particular reference to Nigeria and with a view to:-

1. Finding out those developmental techniques or tools of foreign direct investors which may help increase productivity in Nigeria.
2. Ascertain the extent to which FDI has invested in Nigeria.
3. Identity the problems that militates against effective and efficient development of Nigeria.
4. Make necessary recommendation following the findings of the study.

Significance of the Study

Social science is concerned with the study and investigation of human behaviour. Nations likewise are concerned with what should be done to achieve sustained and high levels of  productivity through its investment. This means giving close attention to how nations can best be developed effectively and efficiently to achieve set goals.

This study is unique and significant in many ways. First, the findings of this study will provide reliable date to the people of Nigeria.

It will provide a reliable and useful literature to the students of government and public administration.

The findings will also promote and stimulate new ideas and extend the frontiers of knowledge in the area of foreign direct investment in Nigeria.

1.6 Scope of the Study

The work is restricted to the study of the effect of foreign direct investment in developing nations using Nigeria as our case study.

Pages:  73

Category: Project

Format:  Word & PDF        

Chapters: 1-5

Material contains Table of Content, Abstract and References.