Corporate Social Responsibility And Firm Performance

Corporate Social Responsibility And Firm Performance

Chapter One

Preface

Background To The Study

latterly to the increase surge of globalization and liberalization since 1980’s. The penetration, breaking and dismembering of walls to trade, investment, capital overflows and technology movement across public borders have been through to fore. This is against the background of dramatic increase in foreign private investment flows spectacular spread of transactional pot( TNC).

The rapid-fire advancement in technology, the development of rapid-fire means of transportation and telecommunication and proliferation of the mass media.

Since the medial 1980’s, the growing integration of requests and fiscal institutions and increased profitable liberalization have been made a attraction for foreign private investment. According to Aremu 2000 “ liberalization programs has expanded effect profitable space where directors and investors could interact, therefore creation globalization in which this profitable actors bear as if the entire world is a single request ” Aremu observed also, that it’s inversely true that globalization has whisked the pace and inversely extended the compass. profitable liberalization radiated from liberalization, globalization again has in- erected strategy to further accelerate liberalization. thus, it’s delicate to insulate foreign private investment from globalization because the important profitable consequences of globalization especially for developing countries like Nigeria has been the massive and unpredicted inrushes of foreign private investment, during the first decades of the 20th century.

However it is material for the sake of clarity to state foreign private investment( FDI) and portfolio investment( PI) the focus of this study is on foreign direct investment as portfolio investment has been negligible in Nigeria and unpredictable in nature.

Foreign direct investment( FDI) is viewed as a major encouragement to profitable growth in developing countries it’s capability to deal with two major obstacles, videlicet deficit of fiscal coffers and technology and chops has made it the centre of attention for policy makers in low income countries in particular.

Foreign direct investment( FDI), the largest element of long term capital flows to developing countries has come a pivotal factor in ultramodern profitable development process from available statistics, the challenge to attract further inrushes for investment in developing design has come acute in Sub Sahara African where only a small proportion of new inrushes has gone. This situation has been worsened due to accelerating process of globalization. therefore Nigeria’s dire need for foreign direct investment( FDI) could be classified into three broad aspects. First, foreign direct investment( FDI) is needed to fill the savings and foreign exchange gaps and thereby enable the country to achieve its profitable eventuality. The force side of the frugality requires a massive injection of foreign coffers in order to evoke the necessary inverse affair, minimize the growth of severance and reduce the affectation rate significantly. Secondly, foreign direct investment( FDI) inrushes is bear to stimulate of domestic affair and diversity and expand the non soil import sector. Thirdly, the effective operation of external arrears both presently and in the medium to long term requires the injection of non debt creating external coffers in malignancy of these sanguinity and anticipation the aggregate capital flows into African countries and indeed Nigeria is relatively low.

Since foreign direct investment( FDI) is subject to numerous of the same “ pull factors( large request size and high per capital income, profitable political and social viability, favourable governance and active privitalization policy). A possession of these “ factors ” and the consequent design and perpetration of applicable programs and measures that would make the policy terrain, invest friendly remain a abecedarian prerequisite.

Statement Of The Problem

As earlier mentioned, the quantum of investment book foreign and domestic in a country is a major determinant of the country’s position of profitable development, Nigeria, like numerous developing countries warrant acceptable investment both in husbandry and assiduity. This has led to an miserable growth with attendant structure base wide poverty amongst others.

Agriculture, the leading sector of the frugality depend substantially on domestic capital, still, this source of capital is inadequate to sustain any meaningful development. also, investment in the artificial sector which was and is skill dominated by foreign capital could hardly be said to be acceptable, the dvert of independence in numerous African countries in the medial 20th century, led to the fears of foreign investment?

Again, governments sweats aimed at attracting foreign capital has not been successful, hence, the general position of foreign investment in Nigeria is still low. The problem is that there’s no clear understanding of the major determinants of foreign investment overflows. In other words, what are the main factors that impact foreign direct investment in the country.

There’s the issue of volatility of foreign direct investment( FDI) inrushes. still do government strengthen the applicable fiscal and other growing profitable and other institutions to avoid the buckets endured in other growing profitable like Asian countries? Put adverse consequences oscillations in foreign direct investment( FDI) inrushes on the frugality?

Significance Of The Study

This study is of vital significance in numerous important felicitations, given the unprepossessing growth rate of Nigeria’s frugality coupled with the myriad of problems in the country, the study is particularly important in catching on if the determinant of foreign direct investment( FDI) inrushes have nay comportments on the state on the frugality.

This study will also chart a new course for the inauguration and perpetration of the applicable and necessary programs that will act as incitement to foreign investors. In addition, the study will give policy makers the foresight to more buffer the unwelcome goods of shifting in foreign direct investment( FDI).

Ideal Of The Study

The study seeks to

To estimate the determinants of foreign investment in Nigeria

To trace the impact of foreign investment in Nigeria

To review the trend of foreign investment inrushes in the country overtime

To examine the issue of foreign investment volatility.

Thesis Of The Study

thesis are logical enterprises grounded on available information relating to the problem under disquisition for this study, thesis to be tested in volition and null forms

These are

Null thesis = HO

Globalization and liberalization doesn’t have relationship with the determinant of foreign direct investment( FDI)

Indispensable thesis = H1

Globalization and liberalization have positive relationship with the determinant of foreign direct investment( FDI) in Nigeria.

Compass And Methodology Of The Study

The intent of this study, will be carried out in Nigeria, with a view of assaying the determinant of globalization and liberalization doesn’t have positive relationship with the determinants of foreign direct investment( FDI) in Nigeria inrushes into the country taking into consideration the socio- profitable conditions and policy frame that prevailed till date.

still, the period 1980 to 2008 was chosen for the study because principally, the study reckoned heavily on secondary data. So much of the date and accoutrements relating to the study were attained from the Central Bank of Nigeria Billions and Statistical bulletins, Civil office of statistics journal, world bank journals and reports, factory paper, exploration institution similar as the public centre for operation and administration,( NCEMA) and the Nigeria conference on trade and development( UNCTAD) papers and publications of the Nigeria profitable society( NES) and the Nigerian profitable and fiscal review( NEER). review, once design workshop and the internet, were of immense helps applicability and academic value to the thing of the exploration.

Eventually, econometric ways were employed in the analysis of the model related to the study.

Limitations Of The Study

One limitation of the study is its incapability to empirically ascertain the relative important of some factors similar as political and profitable insecurity and deteriorating social and profitable structure appeared to have negative determinant of foreign direct investment( FDI) in Nigeria and also have negative impact on the amenability of foreign investors to invest in Nigeria Time constraints which is the introductory problem is a grueling and meticulous task which requires acceptable time for meaningful result, it posed a limitation also as problem is a grueling task for experimenters work to be completed with a given period of time.

Also, we have specialized constrants which involves the non vacuity of detailed literature on the determinant of foreign direct investment( FDI) in Nigeria.