IIARD International Institute of Academic Research and Development

IIARD International Journal of Economics and Business Management (IJEBM )

E-ISSN 2489-0065
P-ISSN 2695-186X
VOL. 10 NO. 7 2024
DOI: 10.56201/ijebm.v10.no7.2024.pg41.65

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Factors Influencing Corporate FDI Decisions/ Investment Location and Activity in Nigeria

Okafor Uchechukwu Anthonia and Ajoma Godwin Agbeje

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Abstract

The study examined the factors influencing corporate Foreign Direct Investment (FDI) decisions and investment location and activity in Nigeria. The research was conducted using an OLS regression analysis approach, incorporating quantitative research methods. The study found that FDI has a significant relationship with market size (GDP), and insignificant relationship with exchange rate, inflation rate and degree of trade openness. The findings of the study revealed that several factors influence corporate FDI decisions and investment location and activity in Nigeria. These factors include market size and growth, political stability, infrastructure development, availability of skilled labour, legal and regulatory environment, economic policies, exchange rate, inflation rate and degree of trade openness. Furthermore, the study also highlighted the significant role of corruption in the country, which could deter foreign investors from investing in Nigeria. The research showed that the Nigerian government must address the issue of corruption to create an enabling environment for foreign investors. In addition, the study identified the importance of promoting sustainable investment practices and corporate social responsibility initiatives to enhance FDI inflows and promote economic development in Nigeria. The study recommended that addressing corruption and promoting sustainable investment practices and corporate social responsibility initiatives can enhance FDI inflows and promote economic development in Nigeria. This research provides a foundation for policymakers and investors to make informed decisions regarding FDI in Nigeria.

keywords:

Corporate Foreign Direct Investment (FDI), Investment Location, Nigeria

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