AN EMPIRICAL ANALYSIS OF ENVIRONMENTAL IMPACT OF FOREIGN DIRECT INVESTMENT IN THE MINING SECTOR IN NIGERIA

ABSTRACT
This study attempted to estimate the environmental impact of Foreign Direct Investment in the mining sector in Nigeria. It is argued that only those countries that have reached a certain income level can absorb new technologies and benefit from technology diffusion, and thus reap the extra advantages that FDI can offer. The mining industry in Nigeria is dominated by oil. Indeed, Nigeria is the largest producer of this commodity in Africa and sixth largest producers in the world. This research study makes use of secondary data. The variables used are the Foreign Direct Investment (FDI), gross domestic product (GDP), output of mining industry and per capital flight (KF). This study covers a period of 31 years that spans between 1980 and 2010. The regression analysis of the Ordinary Least Square (OLS) method will be use for analysing the data. The result of the analysis shows that 37.53 per cent increase in FDI caused one per cent increase in the GDP. GDP will increase by one per cent as index of mining output and capital flight increased by 84.32 and 50.37 per cent respectively. It was also reveal that 8.03 per cent increase in FDI caused one per cent increase in the mining output. It is however recommended , among other, that policy measures should be instituted to make the domestic economy more attractive for investment in the mining sector of the economy.

CHAPTER ONE
INTRODUCTION
1.0 Background of the Study
In the last two decades, foreign direct investment (FDI) flows have grown rapidly all over the world. This is because many developing countries see FDI as an important element in their strategy for economic development (Ayanwale, 2007). Mergers and acquisitions including private- to-private transactions as well as acquisitions through privatization, which increased significantly in developing countries became an increasingly important vehicle for FDI (Kyaw, 2003). This has led to many countries improving their business climate to

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