The 2005 Debt Cancellation and Foreign Direct Investment Nexus in Nigeria: Curse or Blessing? (original) (raw)

2012

Abstract

The Foreign Direct Investment (FDI) in Nigeria incr eased by 75.5% between 2005, when the bulk of the country’s external debt was cancelled by her ma jor external creditors and 2009. Is such an increase significant? Data sourced from The World B ank on FDI for the five-year pre-debt cancellation period (2001-2005) were compared with those of the 2006-2010 five-year post-debt cancellation period using paired sample t-test stat istics. The paired sample correlation of both periods is negative and not statistically significa nt at 0.05. Their paired mean difference which is statistically significant at 0.05 in conformity with a ‘priori’ expectation negates some earlier works . The heavy inflow of FDI into the country however do es not have any significant effect on manufacturing capacity utilization rate, employment rate, life expectancy and poverty level. One is therefore tempted to regard the improvement the rel ief has brought to the economy as disillusioning. This paper recommends ...

MICHAEL OSENI hasn't uploaded this paper.

Let MICHAEL know you want this paper to be uploaded.

Ask for this paper to be uploaded.