Foreign Direct Investments (FDIs) are a highly debated economic phenomenon within international economy. Today we are concerned about the impact of FDIs on growth in hosting economies, and whether the investment flows can be determined as an advantage. This paper seeks to examine FDIs impact on growth in Nigeria from 1995 to 2015. Hereby, this paper aims to make some general statements of the use of FDIs and its effect in Nigeria.
The paper will introduce three positions that are based on the theoretical framework. These positions are presented as follows: “The context of the case and third variables determine whether FDIs have a positive effect on growth”, “FDIs cause negative effect on growth at the local level” and “FDIs will not guarantee a positive output of growth in the short term, but can be beneficial in the medium to the long term”.
First, the paper will outline FDIs according to development theory, neoliberal theory and dependency theory. The paper then introduces the quantitative and qualitative methodology on how to examine the relationship between FDIIs and GDP in Nigeria by introducing OLS regression, content analysis and document analysis. The results of the OLS regression are put into perspective by reflecting and discussing the results according to our previously mentioned hypothesis. All parts are analysed according to spillovers, context of the case and third variables.
Having applied OLS statistics to our variables, the paper found that FDII and GDP have a positive relationship that supports economic growth in Nigeria. The relationship was found statistically significant when our confounding variable of Crude Oil Price per Gallon was added to the sample. When discussing the results in relation to our three hypothesis, the paper found that positive spillovers are essential for FDI to succeed. Finally, suggestions on how to overcome obstacles in Nigeria were presented, and the case was put into perspective by focusing on Chinese investments impact on Nigeria.
Keywords: Case study, Nigeria, Foreign Direct Investment, GDP, growth, spillovers.
|Uddannelser||International Public Administration and Politics, (Bachelor/kandidatuddannelse) Kandidat|
|Udgivelsesdato||31 maj 2019|