Foreign Direct Investment: An Impetus for Economic Growth in Developing Nations (Evidence from Nigeria)

Abstract

This work titled foreign direct investment; an impetus for economic growth in developing Nations: Evidence from Nigeria has explored FDI's as engine for technology transfer and skills acquisition that is capable of expanding the nation’s industrial base and generating revenue for the government as well as employment capable of transforming Nigeria economy from developing to a developed one. Therefore, the objective of the study was to examine effect of technological benefits in promoting backward and forward linkages in domestic economy and to determine the effect of revenue generation on domestic investment concurrently with debt servicing in Nigeria. The study adopted review and practical analysis method of scholarly works that contribute to the debate on FDI, by assessing the impact of technology transfer and revenue generation as impetus for growth in developing nations with particular reference to Nigeria. Findings from the study revealed that, technology has significant effect in promoting forward and backward linkages in diversifying domestic economy and that, revenue generated through FDI assist in additional domestic investment concurrently with debt servicing and the researchers recommended that; Nigeria need to put in place good policies that can attract high-tech FDI's and that, Nigerian government needs to reduce unnecessary/extravagant spending to enable the nation save revenue accruals from FDI's to enable Nigeria reinvest in order to expand  its industrial base.

Keywords: Foreign, Investment, Developing, Nations