MC 09 Government Trade Policies and Foreign Direct Investment
Government Trade Policies and Foreign Direct Investment
Murat, Akyuz , Ph.D,
Department of Business Administration,
Nile University of Nigeria
Opusunju, Michael Isaac, Ph.D.
Department of Business Administration,
Nile University of Nigeria
opusunjumike@gmail.com
ABSTRACT
The study examined the nexus between government trade policies and foreign direct investment. The study proxied government trade policies as tax policy, balance of payment and trade openness while foreign direct investment is proxied as equity capital, re-investment capital and intra company loan. The study adopted conceptual research design. The study collected data from past literature review and article published in reputable international or local journals. The study developed a conceptual model to explain the relationship that existed between the variables. The findings showed that government trade policies attract foreign direct investment while foreign direct investment attract government trade policies. The model also incorporated exchange rate and corruption, safety, market size, transportation facilities, road network, electricity and energy which implies that foreign direct investment is influenced by corruption and corruption also affects government trade policies. Also, exchange rate, corruption, safety, market size, transportation facilities, road network, electricity and energy also affected government trade policies such as tax policy, balance of payment and trade openness. These variables have effect on the inflow of foreign direct investment in the world. The study recommended that government should continue to ensure effective government trade policies such trade openness, tax policy and balance of payment since it can attract foreign direct investment. Also, foreign direct investors should be encouraged to invest in foreign countries since their investment attracts or change government policies.
Keywords: Trade Policies, Tax Policy, Balance of Payment, Foreign Direct Investment
Akyuz, M., & Opusunju, M. I. (2022). Government Trade Policies and Foreign Direct Investment. 3rd International CEO Communication, Economics, 3rd Proceedings Book (pp. 2068-677). NCM Publishing House. Retrieved from http://www.ceocongress.org/en
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