Foreign Investment

1.1 BACKGROUNG OF THE STUDY Since the 1980s, f pocket-sizes of investing have change revisal of magnitude dramatically world over. save despite the increased coalesce of enthronement funds to developing countries in particular, Sub-Saharan African (SSA) countries, Nigeria, beingness one of the top trine countries that consistently received FDI in the last decade (Ayanwale, 2007), be still characterized by low-spirited per-capita income, high unemployment evaluate and low and falling process rates of GDP, problems which foreign come up to investment are theoretically supposed to solve. The Nigerian government has been cerebrate on policies that ordain help attract foreign investors and all the same the deliverance is still dwindling. It is against this background, that this study tries to examine the determinants of foreign direct investment in Nigeria. The need to animate the stride of economical growth and development by many countries, especially the littl e authentic Countries (LDCs), have propelled them to make deliberate efforts to attract unusual unionize Investment (FDI). This is because most LDCs economies (including Nigeria) are characterised by unsatisfactory domestic savings, excessive imports relative to merchandises as tumesce as high level of remote debts.

They therefore ask external capital to finance their current account deficits and to accelerate the pace of economic growth and development through increased work activities. In this regard, FDI augments domestic savings in bridging the savings investment gap. The efforts made by LDCs are pitch toward up(a) the general investment climate through the word center and implementation of foreign investment-friendl! y policies and programmes such as tax incentives, merchandise promotion and macroeconomic adjustments. Significantly, the drive for foreign investment derives from the sundry(a) benefits it confers on the host country. These benefits include addition of new capital, technology, alter concern and market access. FDI has also been acknowledged as a impregnable source of...If you want to get a undecomposed essay, order it on our website: OrderEssay.net

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