FOREIGN DIRECT INVESTMENT AND THE （外国直接投资和）.pdf

Proceedings of the 1st International Technology, Education and Environment Conference (c) African Society for Scientific Research (ASSR) FOREIGN DIRECT INVESTMENT AND THE PERFORMANCE OF THE NIGERIAN ECONOMY Macaulay Egbo D. Dept. of Accounting Education, Federal College of Education (Technical), Omoku,Rivers State, Nigeria. Email: endmac@ Abstract Foreign Direct Investment (FDI) is investment that is made to acquire a lasting management interest (usually 10% of voting stock) in an enterprise and operating in a country other than that of the investors (Jhingan, 1998). This paper examines FDI and the performance of the Nigerian economy. It investigates how FDI impacts economic growth in Nigeria. The paper recommended among other things, that there should be policies and programmes that will promote or improve FDI and macroeconomic variables in the economy. INTRODUCTION An agreed framework definition of Foreign Direct Investment (FDI) exists in the literature. That is, FDI is an investment made to acquire a lasting management interest (normally 10% of voting stock) in a business enterprise operating in a country other than that of the investor defined according to residency (World Bank, 1996). Such investments may take the form of either “Greenfield” investment (also called “mortar and brick” investment) or merger and acquisition (MA), which entails the acquisition of existing interest rather than new investment. In corporate governance, ownership of at least 10% of the ordinary shares or voting stock is the criterion for the existence of a direct investment relationship. Ownership of less than