FISCAL POLICY AND FOREIGN DIRECT INVESTMENT FLOWS IN NIGERIA

This study examined fiscal policy and foreign direct investment flows in Nigeria. Other objectives were: to examine the trend of fiscal policy and foreign direct investment flows in Nigeria, to appraise various fiscal policy instruments in Nigeria and to assess the impact of fiscal policy on FDI. The findings of the study revealed that fiscal policy instruments have significant impact of foreign direct investments flow in Nigeria, with the rejection of the H₀ and acceptance of H₁ using a 5% level of significance using the Ordinary Least Square statistical method. It was recommended that There should be concerted efforts made by government to generally review and improve her fiscal policy instruments which will assist to create and enabling environment for foreign direct investments flow in Nigeria there promoting economic growth and development in the long run. The government’s fiscal discipline should ensure that prices do not rise arbitrarily in the economy. This could be achieved through subsidizing industrial inputs and at the same time develop the entire sectors to reduce overhead costs. This will go a long way to reducing the level of inflation and investors’ overhead costs. When efforts at liberalizing the economy is being pushed without making effort to improve on the technical qualities of the tradable resources, the benefit will only accrue more to the countries with superior technology. Nigeria should ensure that the qualities of exportable commodities are improved upon to bring about international competitiveness of goods. Both the private and public sector goods in Nigeria should have high level value addition in such a manner that investors can tap into. This can be achieved through the development of the indigenous technology.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION

• Background to the Study
• Statement of the Problem
• Research Questions
• Objectives of the Study
• Research Hypothesis
• Justification of the Study
• Sources of Data and Basis Methodology
• Scope and Plan of the Study
• Definition of Terms

CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL FRAMEWORK

2.1       Conceptual Framework

2.1.1    Foreign Direct Investment (FDI)

2.1.2    Classification of FDI

2.1.3    Foreign Direct Investment Driving Factors

2.1.4    Foreign Direct Investment and Economic Growth Globally

2.1.5    FDI, Fiscal Incentives and the Role of Development Policy

2.1.6    How FDI Works

2.1.7    The Role of Taxes and Investment Incentives

2.1.8    The Nexus between Foreign Direct Investment (FDI) and Fiscal Policy

2.2       Theoretical Framework

2.2.1    Theories of Investment

2.2.2    Theories of Growth

2.3       Empirical Evidence

2.3.1    Emerging Evidences in Developed Countries

2.3.2    Trends in FDI Flows to Developing Countries of Asia

2.3.3    Emerging Evidences in Nigeria

CHAPTER THREE: RESEARCH METHODOLOGY

3.1       Re-statement of Hypothesis

3.2       Model Formulation

• Apriori Expectation

3.4       Method of Analysis

CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS

• Introduction
• Sources of Data
• Data Presentation
• Model Estimation and Result
• Model Interpretation Discussion of Result
• General Discussion

CHAPTER FIVE: SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS

5.1       Summary of Findings

5.2       Conclusion

5.3       Recommendations

REFRENCES