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Foreign Direct Investment In Nigeria Essay

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IMPACT OF GLOBAL FINANCIAL CRISIS ON DOMESTIC INVESTMENT IN NIGERIA (1990-2012)

MELVIN JACOB OSHOMEGIE
U10EC1134

BEING AN UNDERGRADUATE PROJECT SUBMITTED TO THE DEPARTMENT OF ECONOMICS, FACULTY OF SOCIAL SCIENCES, AHMADU BELLO UNIVERSITY, ZARIA, KADUNA STATE; IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF BACHELOR OF SCIENCE (BSc) DEGREE IN ECONOMICS

NOVEMBER, 2014
DECLARATION
I declare that the study titled “Impact of Global Financial Crisis on Domestic Investment in Nigeria” was carried out by me in the Department of Economics, Ahmadu Bello University, Zaria. The information acquired from literatures have been appropriately acknowledged in the text and in the list of references. Also, no part of this project was …show more content…

Funds from abroad are used to provide capital, technology and managerial skills which are then transferred into production in the Nigerian economy.
In the year 2013, the World Bank ranked Nigeria as the 131st country with a good business environment and ease of doing business. The credit rating agencies qualified Nigeria with a poor credit stand of BBB+ (OECD Outlook, 2013). The major reason for this can be attributed to the high poverty rate of Nigeria with over 45% of the population below the poverty line, high unemployment of over 23% of labour force, poor infrastructural development like; power supply road network and water supply, increased corruption and embezzlement in the political class, insecurity and a host of other problems.
Notwithstanding, there are still opportunities for investment to grow in Nigeria. These opportunities abound in areas such as agriculture, construction technology, telecommunications, transportation, tourism, accommodation, food services, oil and gas, manufacturing, wholesale and retail trade, arts and entertainment. Hopes are flying high given that the effect of the global financial crisis has declined and the economy is recovering, hopefully, investing in Nigeria will become attractive to the domestic …show more content…

A general review on growth theories will be done to show how investments translate to growth.
The Neoclassical definition of investment is that investment is the addition to the stock of capital a firm possesses. The neoclassical view explains investment with four basic assumptions (Crotty, 1993). The first is that investment begins with the pursuit of the owner’s objective to maximize profit. Anything or investment that will not add to profit will not be invested in. secondly, the neoclassical view the firm and owners to be the same. Thirdly, in making investments, owners and agents have knowledge of the future and can assign probabilities to outcome. Fourthly, owners are rational and therefore they make rational choices. They don’t invest if they don’t expect

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