The Impact of Foreign Direct Investment on Nigeria Economy

Foreign direct investiture (FDI) is one of the standard panacea for economic underdevelopment in the economic development books. FDI has been defined as an investiture made to acquire a lasting centering by- bank line (normally 10% of voting stock) in a dividing line enterprise operating in a country other(a) than that of the investor (where foreign is defined fit in to residency and non according to nationality) (World Bank, 1996). Such investments could take the form of either Greenfield investment (also called trench mortar and brick investment) or merger and attainment (M&A) which entails the acquisition of existing interest rather than new investment. In incarnate governance, ownership of at least 10% of the ordinary shares or voting rights is the criterion for the existence of a direct investment relationship (World Bank, 1996; Obadan, 2004; Ayanwale, 2007). FDI has delusive a prominent place in the strategies for economic reaping as it is useful in bridgin g the technological and imagination break of under veritable countries and also stems the tide of debt build-up (UNCTAD, 2005). FDI is expect to help a growing nation access map of the savings of the developed world, thereby helping to make up for the countrys dearth of savings (Noorzoy, 1979).

Furthermore, FDI helps fill the national revenue-generation gap in a developing economy, given that in most developing countries, governments do not seem to be able to turn in sufficient revenue to couple their expenditure needs. FDI is said to be a vehicle for transportation of applied science both the technology emb odied in goods, services, people, organizati! onal arrangements, and those embodied in blueprints, designs, proficient documents, and in the mental ability of innumerable types of training. That FDI promotes technology transfer is advocated in the works of UNCTAD (1997), UNIDO (2002), Ikiara (2002), Caves (1996),Kim and Seo (2003), Borensztein, De Gregorio and lee (1998). Inspite of the debate raging in the literature on the...If you call for to get a full essay, lay out it on our website: BestEssayCheap.com

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