BACKGROUND OF THE STUDY The study analyzed the impact of foreign direct investment on domestic investment in Nigeria. The relationship between foreign direct investment FDI and domestic investment is a controversial issue in Nigeria. One of the main debates is whether FDI has significant effects on domestic investment in Nigeria. On one hand, by creating spillover effects, FDI may lead to new or higher amounts of domestic investment where it would not be possible in the absence of FDI
International Monetary Fund, foreign direct investment, commonly known as FDI, "refers to an investment made to acquire lasting or long-term interest in enterprises operating outside of the economy of the investor." The investment is direct because the investor, which could be a foreign person, company or group of entities, is seeking to control, manage, or have significant influence over the foreign enterprise. What Is FDI? These three letters stand for foreign direct investment. The simplest explanation
success in opening up their domestic markets to international trade and foreign investments. Therefore, the policy of attracting foreign investment has become an integral part of the economic policy of many countries, with the help of which seek to achieve economic growth. A flow of foreign capital is a source of competitiveness for both foreign investors and for the economies receiving investments. The value of foreign direct investment (FDI) to the economy in all countries of the world, especially in
ADVANTAGES OF FOREIGN DIRECT INVESTMENT Foreign Direct Investment takes place for private gain but it has the following potential benefits for less developed countries like India. Raising the level of Investment Foreign investment can fill the gap between desired investment and locally mobilized savings. Local capital markets are often not well developed. Thus, they cannot meet the capital requirements for large investment projects. Besides, access to the hard currency needed to purchase investment goods
Foreign direct investment (FDI) plays an important role in the growth and development of an economy. It is more important where domestic savings is not sufficient to generate funds for capital investment. Developing countries in Asia, Africa and Latin America have come increasingly to see foreign direct investment (FDI) as a source of economic development, modernization, income growth, employment, and so poverty reduction. This is apparently reflected by their currently pursued economic policies
Research on Foreign Direct Investment (FDI) has been one of the most intensive areas of international economics in the last decade (Pan, 2002). The Economy Watch (2010) defines FDI as a type of investment involving the injection of foreign funds into an enterprise that operates in a different country of origin from the investor. More specifically, FDI refers to the investment of foreign asset into domestic goods and services and this does not include the foreign investments in stock markets (Ong
Foreign Direct Investment (FDI) is one of the most prominent market entry strategies employed by MNCs. It has been established that if the firm owns more than 10% of the value over a company then it has sufficient influence to be a direct investment. An FDI can manifest itself as a merger with a foreign firm, by acquiring an already existing firm in the foreign country or as a completely new set-up known as Greenfield investment. Each of these three options have distinct attributes and materialise
that foreign direct investment (FDI) has direct relationship with inflation rate in that for every increase in inflation rate, foreign direct investment (FDI) will increased. Kiat (2007) had found that inflation has a negative impact on foreign direct investment (FDI). The relationship is more significant in developed economies than those in the lesser developed economies, but this can be attributed to more volatile economic environment. According to Financial Times, foreign direct investment (FDI)
In the last two periods, foreign direct investment (FDI) in emerging countries has become more and more important to have direct investment in developing countries in attracting substantial and rising foreign investment more and more success. However, empirical research is lagging behind, and have more trouble finding these advantages in practice. The most obvious is that a large number of application documents have already seen foreign direct investment on the relationship between GDP growth, but
economic growth and development One of the economic effect was fall in foreign direct investment(FDI) According to the world investment report (WIR) 2013, FDI flows into Nigeria dropped by 21% in just one year from $8.9 usd billion in 2011 to $7 billion in 2012. The loss of $1.9 billion for a country in