Investment Modes,Legitimacy And Multilevel Influence

Strategically speaking,the investment modes,legitimacy and multilevel influence of Chinese foreign direct investments in Nigeria have become increasingly noted for achieving long-term cooperation between both nations,avoiding trade disputes and promoting mutual understanding between the host country(Nigeria)and the home country(China).Building upon the Eclectic Paradigm which focuses on three sub-paradigms(Ownership,Location and Internalization),this research seeks to examine the modes of entry of Chinese multinational enterprises(MNEs)into Nigeria,to understand the compliance rate of Chinese firms to government policies and regulations in Nigeria,and finally to investigate the multilevel influence of Chinese foreign direct investments(FDI)on Nigeria's governmental,industrial and societal development level.The conceptual framework is developed and aims to answer three important research questions as follows: Research question 1: What impact does Chinese foreign direct investments have on the governmental development level in Nigeria? Research question 2:What is the effect of Chinese foreign direct investments on the industrial development level in Nigeria? Research question 3: What is the influence of Chinese foreign direct investments on the societal development level in Nigeria?The framework is tested based on data collected from Chinese firms in Nigeria in construction,manufacturing,infrastructure and service sectors.The data accumulated from online-based questionnaire survey is imputed,coded and analyzed using statistical software SPSS;and the analytical result shows that Chinese MNEs' modes of investment in Nigeria consist of joint-ventures,strategic alliance,business partnership and foreign direct investments.It also suggests that Chinese enterprises comply with government policies and regulations in Nigeria and that Chinese FDI exerted a positive influence on governmental and industrial development levels in Nigeria whilst Chinese FDI does not significantly affect the societal development level of Nigeria.The research provides noteworthy implications for researchers and practitioners in the following aspects:(1)It provides guidelines for foreign investors in Nigeria as well as the host country about factors that influence the relationship between FDI and host country development levels;(2)The present investigation has contributed to the body of knowledge on assessing Chinese MNEs' mode of investments,legitimacy and multilevel influence on Nigeria's economy.This research has created an opportunity for further investigation since rarely have any significant academic efforts been put into the study of this topic;(3)This research has also provided insights on building trade relations between both countries(China and Nigeria)especially by reducing mistrust between two parties and rebutting the claim that Chinese FDI is only in favor of China.It indicates instead that it is of mutual benefits for both countries and can promote economic developments for both countries.This research also provides directions for future research,including using interviews and involving more sample firms in survey,and practical implications for Nigeria government to attract more FDI inflow.