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Effect of foreign direct investment on the performance of manufacturing companies in south west, Nigeria

 Department: Economics  
 By: usericon Besterine97  

 Project ID: 3209
   Rating:  (3.1) votes: 10
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   Price:₦5000
Abstract
This research work empirically explored the effect of foreign direct investment on performance of manufacturing companies in South West Nigeria. The objectives of this study were to examine the effect of Foreign Direct Investment on manufacturing companies output in South West Nigeria, evaluate the effectiveness of Foreign Direct Investment in addressing fluctuation in manufacturing company’s output in South West Nigeria, to use econometrics models to investigate if a long-run relationship exists between Foreign Direct Investment and manufacturing companies output in South West Nigeria. The scope of the study was restricted to the use of Vector Error Correction Model (VECM). The variables affecting FDI that were examined are real interest rate (INT), real exchange rate (EXC), and inflation rate (INF) then manufacturing output (MAO) as the dependent variable. The period of coverage for the study was thirty-three years, from 1986 to 2019. The findings from the study revealed that in Nigeria, manufacturing output is affected by the level of Foreign Direct Investment (interest rate, exchange rate and inflation rate) investigated over the period of study.  However, the inflation rate channel has more effect on determining FDI when compared to other variables. Following the findings, it was recommended that government should embark on policy measures to balance the inflation rate, exchange rate and interest rate since they have significant impact on Nigeria manufacturing sector growth under the period reviewed, government should embark on policy measures to maintain macroeconomic stability and improve infrastructural facilities so as to encourage FDI, government should embark on policy measures to expand product markets so as to increase FDI level. Keyword: foreign direct investment, manufacturing companies, Nigeria. ...
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