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
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.
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Related
Nigeria Economic Update (Issue 46)
The
Executive council recently approved a three-year external borrowing plan
(2016-2018) which specifies external borrowing of approximately $30 billion (to
be sourced mostly from MDBs) for infrastructure development.
Although, the plan is yet to be approved by the Senate, the planned concessional
loans for infrastructural development would imply inflows of foreign exchange which
could help moderate the exchange rate volatilities in the near term, and offer
potential improvement in business productivity and job creation.