Foreign Direct Investment (FDI) Trends in Developing Nations: Nigeria Experience in a Globalization Era

Abstract

The idea supporting the efficacy of foreign direct investment (FDI) in the developing nations for greater economic growth and development is a subject of both theoretical and empirical examinations over the years.
However, the share of the gains, losses and benefits of the flows has been a thing of concern.
This paper therefore investigates the nature and the magnitudinal trends of FDI in developing nations, taking Nigeria as a case study using a trends analytical approach.
It thus revealed that there is an undulating terrain in the flows of FDI to developing nations, with Africa and Nigeria in particular assuming a low position in the comity of developing nations’ share of FDI. This therefore was adduced to the acclaimed negative relationship between FDI and Economic growth in Nigeria by many authors (Ayadi, 2009). It thus recommended that the developing nations and Nigeria in particular should be cautious in the process of opening-up their economies while exploiting the growth potentials of FDI, in the globalization stance.
Key words: Direct Foreign Investment (FDI); Globalization; Trends; Economic growth; Developing nations; Economic liberalization development