Foreign Direct Investment In Nigeria

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INTRODUCTION 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, thus have a “crowding in” effect. On the other hand, due to the lack of competition of the domestic firms, increase in the level of interest or adverse knowledge spillovers, FDI carries a risk of crowding-out for domestic investment.…show more content…
RESEARCH QUESTION This is to know the impacts and significant effects of FDI on domestic investment in Nigeria. As Nigeria is a developing country, the study is to know the eventual effects of FDI on domestic investment. Due to the lack of competition of the domestic firms, increase in the level of interest or adverse knowledge spillovers, FDI carries a risk of crowding-out for domestic investment. As the domestic firms are at risk of being crowded-out due to FDI, the study is to know the effects of FDI on the competitions of domestic firms in Nigeria, also to know the overall effects of FDI on investment in Nigeria. OBJECTIVES OF THE STUDY The general objective of the study, is to know the effects of foreign direct investment on domestic in Nigeria. Specific objectives of the study are as…show more content…
To know the effects of FDI on DI in Nigeria. ii. To know the merits of FDI on DI in developed economies. iii. To know the demerits of FDI on DI in developed economies. iv. To know the merits of FDI on DI in developing economies. v. To know the demerits of FDI on DI in developing economies. HYPOTESIS OF THE STUDY JUSTIFICATION OF THE STUDY The study is to know the effects of foreign direct investment on domestic investment in Nigeria, a developing country and other developed countries (USA, INDIA, CHINA), Furthermore, to know if the adoption of foreign direct investment would be useful for domestic firms in Nigeria and the adverse effects of foreign direct investment on the firms. SCOPE OF THE STUDY DEFINITION OF TERMS FDI (foreign direct investment); wikipedia.org: A foreign direct investment (FDI) is a controlling ownership in a business enterprise in one country by an entity based in another country. FDI is the net inflows of investment (inflow minus outflow) to acquire a lasting management interest (10 percent or more of voting stock) in an enterprise operating in an economy other than that of the investor.FDI is the sum of equity capital, other long-term capital, and short-term capital as shown the balance of

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