THE INFLUENCE OF CHINA’S FOREIGN DIRECT INVESTMENT ON THE ECONOMIC AND POLITICAL FRAMEWORK OF AFRICA (A CASE STUDY OF NIGERIA)

Solomon KUNLE OMOGBEMI

doi:10.24193/subbeuropaea.2021.2.05

Authors

Solomon KUNLE OMOGBEMI Lecturer and researcher at the Faculty of Applied Science, WSB University Dabrowa Gornicza, Poland; intern at the Centre for African Studies (Babeș-Bolyai University, Cluj-Napoca, Romania). Contact: somogbemi@wsb.edu.pl

DOI:

https://doi.org/10.24193/subbeuropaea.2021.2.05

Keywords:

Foreign Direct Investment, Gross Domestic Product, China, Nigeria, Political Framework, Economic Framework.

Abstract

China has been spreading its tentacles across continents particularly sub-Saharan Africa and Nigeria. The objective of this paper is to investigate the influence of Foreign direct investment on the economic and political framework of Africa, using Nigerian as a case study. The foreign direct investments from China to Africa and particularly to Nigeria has not been received well in the pool of public opinion. However, the benefits the investment pool has on the economic and political framework is positive. Yet, researchers, believe that caution should be taken to avoid excessive FDI from China. The method of regression analysis was employed to prove the relationship between FDI inflow and annual GDP. The result showed that there is a strong and significant influence of FDI on GDP and vice versa.

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