Multinational Exodus and National Economy in Nigeria (A Study of Anambra State)

Abstract

Multinational corporations contribute significantly to national development through employment generation, revenue creation, and tax contributions. This study examines the impact of multinational exodus on Anambra State’s economy, using the new trade theory by Tejvanne (2013), which highlights globalization’s role in economic growth driven by multinationals. A survey research design was adopted, with questionnaires distributed to employees of selected multinational companies. Out of the 18 registered multinationals in Anambra State, 10 were selected using convenience sampling. The total population was 10,520 employees, and Taro Yamane’s formula determined a sample size of 385. Of the 385 questionnaires distributed, 325 (84.4%) were properly filled and returned, while 60 (15.6%) were not. Data were analyzed using linear regression at a 5% significance level. Findings revealed that foreign exchange scarcity (? = -0.666; t = 33.568; p < 0.05) had a significant negative effect on GDP. Exorbitant energy costs (? = 0.623; t = 14.327; p < 0.05) significantly increased inflation, while power supply issues (? = -0.662; t = 15.855; p < 0.05) negatively affected multinational investments. The study concludes that forex scarcity and power challenges hinder GDP growth and investment, while high energy costs drive inflation. The study recommends that the Anambra State government create a more business-friendly environment to reduce multinational exodus, ensuring economic stability and sustainable development.

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