International Political Economy of External Economic Dependence and Foreign Investment Policy Outputs as a Component of National Development Strategy: Nigeria 1954-1980
Description: This study examined the effects and expectations of external economic dependence on foreign investment policy outputs with particular reference to the Nigerian experience between 1954 and 1980. Three basic kinds of external economic dependence were studied: foreign investment, the penetration of the Nigerian economy by foreign capital through the agency of the multinational corporations (MNCs); foreign trade, a measure of the Nigerian economy's participation in the world market; and foreign aid (loans and grants), a measure of Nigeria's reliance on financial assistance from governments and international financial inst itutions. For the most part, the level of Nigeria's economic dependence was very high. However, economic dependency is not translated into changes in foreign investment policy in favor of the foreign investors in Nigeria as is predicted by the dependency paradigm. The Nigerian case casts doubt on the dependency paradigm as a framework for fully explaining factors that may determine foreign direct investment policy changes that occur in a less developed Third World country. In other words, the dependency paradigm has a limited explanatory power; there is a factor independent of the economic factor operating out of the control of global capitalism (the center of the center in alliance with the center of the periphery); and that factor is the political process in Nigeria. The web of the Nigerian political process involves the various aspects of its internal functioning such as the manner in which needs, interests and demands are conveyed from the individuals and groups in the country to those performing state duties. Thus, Nigerian policy makers were more influenced by those elements than pure economic considerations treated in isolation.
Date: December 1986
Creator: Ighoavodha, Frederick J. O. (Frederick J. Ofuafo)