Chinese-Nigerian Foreign Direct Investment Relationship

Introduction One of the many byproducts of globalization is the rapid increase in free trade agreements, bilateral trade agreements, and internationally signed regional trade agreements, as the market responds to global demand expansion. China and Nigeria have signed bilateral trade agreements, but at least in the short term it is clear that China gained much more benefit from this relationship than Nigeria. If Nigeria wants to accelerate economic development, reduce corruption between political elites, and promote good governance and effective monetary policy, now the Chinese funds currently flowing from oil revenues are concentrated in the center of many foreign investors It will be able to develop into the earth.

The purpose of this research was to study the impact of foreign direct investment on the oil sector on the economic growth of Nigeria. Evidence from the Nigerian economy suggests that there is a relationship between money stock and economic growth or economic activity since the 1980s. Over the years Nigeria has dominated the economy by changing inventory. Due to the sharp drop in crude oil price in 1981 and the deficit of B.O.P that occurred during this period various stabilization methods ranging from fiscal policy to monetary policy were used. Interest rates are fixed and are said to be beneficial for large borrowers (Ojo 1989). Ikhide and Alawode (1993) conclude that when gross interest rates are raised and the currency stock is reduced, the gross national product will go down when evaluating the impact of the structural adjustment program (SAP).

This survey investigated the impact of oil direct investment (FDI) on economic growth in Nigeria. Real GDP is used as an indicator of economic growth and dependent variables, and direct oil investment, interest rates and exchange rates are used as explanatory variables, and the influence of direct oil investment (FDI) on real GDP is investigated. We analyzed data on petroleum direct investment over 10 years using a regression model. As a result, during the investigation period it became clear that foreign direct investment (FDI) in the oil sector accounted for a large increase in the Nigerian economy. The findings further indicate an important relationship between the national exchange rate and economic growth.

G. Jayachandran mentioned the relationship of trade, foreign direct investment (FDI), and India's economic growth from 1970 to 2007. Economic growth of documentary trade and foreign direct investment (FDI) usually shows a positive growth relationship between trade and foreign direct investment. However, there are few studies directly testing the causal relationship of the three variables. In theory, economic growth can cause inflows of foreign direct investment, trade and foreign direct investment can also stimulate economic growth. This paper adds literature by analyzing the existence and nature of these causal relationships. The current analysis focuses on India, with the largest increase in foreign direct investment. The analysis shows that there is a long-term equilibrium relationship. The result of the Granger causality test shows that there is a causal relationship between the test variables. Under open policy, economic growth, trade and foreign direct investment seem to complement one another.