The Inevitability of Multinational Corporations towards Achieving Sustainable Development in Developing Economies: A Case Study of the Nigerian Economy

Abstract

This paper dwells on the inevitability of multinational corporations in the sustainable development of developing economies, using Nigeria as a case study. Over the years and with the advent of globalization, multi-national corporations now move with ease across the world to economy of interest, most often times to developing economies. Obviously speaking and considering the huge amount and the technicalities involve in setting up these multi-nationals, it is obvious that the developing economies cannot do without them. The study made use of secondary data sourced from the Central Bank of Nigeria statistical bulletin and the National Bureau of Statistics between 1970 and 2011. The model for the study has as its dependent variable the Gross Domestic Product (GDP) and its explanatory variables were Foreign Direct Investment (FDI) into Nigeria. Using the Ordinary Least Square (OLS) multiple regression techniques; our study revealed that there is a strong positive relationship between the Nigerian Gross Domestic Product (GDP) and foreign Direct Investment (FDI). That is, the presence of FDIs has greatly impacted positively and significantly on the Nigerian economy given the period of study. This is true to apriori and theoretical propositions. The study, therefore recommended that efforts should be geared towards creating an enabling environment for FDI to thrive in the economy.