Investment Climate and Foreign Direct Investment in Nigeria: The Mediating Role of Ease of Doing Business

The objective of this paper is to assess the mediating role of "ease of doing business" indicators, between investment climate and FDI, as one possible determinants of the changing direction of FDI from developed countries to developing ones. Empirical evidence has shown that "ease of...

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Bibliographic Details
Published in:Journal of energy and economic development 2016-08, Vol.2 (2), p.10-10
Main Authors: Kofarbai, Hamza Zubairu, Bambale, Abdu Ja'afaru
Format: Article
Language:English
Subjects:
Business
Climate
Economic development
Federal government
Financing
Investment
Power supplies
Online Access:Get full text
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Summary:The objective of this paper is to assess the mediating role of "ease of doing business" indicators, between investment climate and FDI, as one possible determinants of the changing direction of FDI from developed countries to developing ones. Empirical evidence has shown that "ease of doing business" is one of the important factors motivating higher inflows of FDI. The paper is conceptual in nature and content analysis is use. The findings reveal that, in Nigeria, the cost of a poor business environment is significant and investment climate constraints add substantially to the cost of doing business. Though, FDI has consistently kept rising year-in, year-out, the study concludes that investment climate in Nigeria is still poor, largely due to infrastructural deficit and administrative bottlenecks which add to the cost of doing business. The paper recommends improved power supply, corruption to be vigorously tackled, tax administration streamlined between states and federal government and good investment policy enacted at various state levels to augment that of federal government in order to attract investors, improve ease of doing business in order to better our economic growth.
ISSN:2376-2438
2376-2446