•  
  •  
 
Business Review

Abstract

The potential impact of Foreign Direct Investment (FDI) on recipient and investing economies is of considerable policy interest (Pain and Wakelin, 1997). Important to the theory of foreign investment in Nigeria is the question whether foreign investors coming to Nigeria are market-seeking or export-driven. This finding is relevant to economic managers in the design and implementation of appropriate macroeconomic policies to attract FDI. It is also relevant to investigate whether FDI contributes to the overall capacity of developing economies to export. This study investigates the contribution of FDI to manufacturing export in Nigeria. Using firm level data collected from 232 manufacturing firms in Nigeria, probit regression analysis revealed that FDI does not significantly contribute to manufacturing exports in Nigeria. This finding supports that of Soderbom and Teal (2002) and Nunnenkamp (2002) that FDI in developing countries like Nigeria are not export-driven but are attracted by certain economic fundamentals within the economy like market size and the availability of natural resources.

Keywords

Foreign direct investment, Manufacturing, Export, Nigeria

Creative Commons License

Creative Commons Attribution 4.0 License
This work is licensed under a Creative Commons Attribution 4.0 License.

Published Online

March 02, 2021

Share

COinS
 
 

To view the content in your browser, please download Adobe Reader or, alternately,
you may Download the file to your hard drive.

NOTE: The latest versions of Adobe Reader do not support viewing PDF files within Firefox on Mac OS and if you are using a modern (Intel) Mac, there is no official plugin for viewing PDF files within the browser window.