The effect of foreign direct investment : case study Nigeria

Abstract

Foreign direct investment involves a business or production investment by a company to one or more countries. FDI enables host countries to achieve economic growth through investments that outweighs that of the host country’s local investment. It increases the capital formation of host countries, which in the long run lead to growth in both the private and public sectors. Host countries usually benefits from foreign direct investment because of new technologies, capital, employee training, and other incentives which investors bring with them.

This paper tends to look at the relationship that exists between the host country and foreign direct investment. The biggest challenge investors’ encounter in developing countries like Nigeria is the lack of infrastructural facilities and this has reduced the amount of FDIs Nigeria. Various articles from different writers are used in this research work on how foreign direct investment affects the host country.

At the end, it was discovered the foreign direct investment helps in developing the economy of developing countries like Nigeria.