THE CONTRIBUTIONS OF FOREIGN DIRECT INVESTMENT TO THE NIGERIAN ECONOMY

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THE CONTRIBUTIONS OF FOREIGN DIRECT INVESTMENT TO THE NIGERIAN ECONOMY

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

One of the most salient features of today’s globalization drive is conscious encouragement of cross-border investment, especially by transnational corporations and firms (TNCs). Many countries and continents (especially developing) now see attracting FDI as an important element in their strategy for economic development. This is most probably because FDI is seen as an amalgamation of capital, technology, marketing and management.

Sub-Saharan Africa as a region now has to depend very much on FDI for so many reasons, some of which are amplified by Asiedu (2001). The preference for FDI stems from its acknowledged advantages (Sjoholm 1999; Obwona, 2001, 2004). The efforts by several African countries to improve their business climate stem from the desire to attract FDI. In fact, one of the pillars on which the New Partnership for Africa’s Development (NEPAD) was launched was to increase available capital to US$64 billion through a combination of reforms, resource mobilization and condusive environment for FDI (Funke and Nsouli, 2003).

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