Publications

January 22, 2016

Trade And Foreign Direct Investment Nexus In West Africa: Does Export Category Matter?

This paper examines the effect of inward FDI in
West Africa on exports to EU countries. It investigates from a host country
perspective, the impact of FDI on different export categories: primary,
intermediate, and final goods.

Download Label
March 13, 2018 - 4:00 am
application/pdf
885.03 kB
v.1.7 (stable)
Read →

Trade and Foreign Direct Investments are the key
divers of economic integration and the globalization process. The widely held
view is that both trade and FDI are beneficial, as the former can stimulate
innovation, productivity, competitiveness, and diversification; and the latter
increases the capital stock, provides new job opportunities, and promotes the
transfer of technology. Thus there have been profound calls within
international organizations for developing countries to encourage both trade
and FDI in order achieve robust economic growth and development. However, critics argue that trade, particularly imports, can
create undue competition and stifle indigenous manufacturing; and inward FDI
can also displace domestic firms. Similarly, from a source country perspective,
outward FDI can lead to loss of jobs as multinationals move job opportunities
overseas




Related

 

Should Nigeria Establish A Sovereign Wealth Fund?

This paper explores the issues relating to the establishment of a Sovereign WealthFund (SWF) in Nigeria consistent with best practices. Experience with established SWFssuggests that successful oil- based funds tend to be underpinned by a sound oil revenuemanagement framework. The paper thus discusses the underlying issues of oil revenuemanagement, the policy choices and SWF implementation issues.

Understanding The Ongoing Recession In Nigeria:A Synthesis Of The Events And Policy Options

In the second quarter of 2016, the Nigerian economy witnessed its first recession in twenty years due to the interplay of several external and internal factors. The recession has continued until date and has given rise to relentless unemployment rate and job losses, double digit and soaring inflation, currency depreciation and widening gap between parallel market and official exchange rates, amongst other adverse effect on individuals and firms in the country. Thus, there is a need to take a deeper look into the nature of the present recession as well as the impact of monetary and fiscal policy responses thus far, in order to shed light on the way forward towards tackling the recession and ensuring sustainable economic growth. This paper analyses the ongoing recession in the Nigerian economy to provide insights into the interplay of events and recommendations for policy.

Nigeria Economic Review

Global economic growth remained fairly stable in 2016Q3 with baseline projections for global growth at 3.1 percent and 2.4 percent by International Monetary Fund (IMF) and the World Bank respectively. Growth in developed countries was moderate but unevenly distributed: while the U.S and the UK showed improvements, growth in other economies remained tepid. Among emerging countries, India witnessed higher growth while growth in China remained constant but the Chinese Yuan continued to appreciate. Given that India is Nigerias major crude oil importer, improving economic conditions in India may translate into rising demand for Nigerias crude oil. However, the continuous appreciation of the Yuan poses significant inflationary threat in Nigeria given the high level of imports from China. Subdued global demand, weak trade, uncertainties in commodity prices and consequences of the Brexit were the key constraining factors to growth over the period. In addition, growth in Sub-Saharan African countries remained generally slow on the account of low commodity price, political turmoil, and inconsistent government policies.

Nigeria Economic Update (Issue 45)

Recently released report by Nigeria Extractive Industries Transparency Initiative (NEITI)shows a significant decline in revenue allocation across the three tiers of government for 2016H1 (January to June). Specifically, total disbursements dropped (year-on-year) by 30.45 percent to N2.01 trillion in 2016H1. The drop in revenue allocations is accountable to the decline in both oil and non-oil revenue. While lower oil revenue was triggered by the drastic fall in oil price and production in 2016H1, lower non-oil revenue was driven by the decline in tax revenue occasioned by contraction in economic activities in the review half-year.