Author(s): Olufemi Muibi Omisakin, Camille Nakhid
Foreign direct investment (FDI) is the act of a resident entity in one economy (country) acquiring a direct investment interest in an enterprise resident in another economy (investee enterprise). The process involves building a bond between the investor and the investee with some degree of management and technological influence on the investee enterprise. The main aim of this relationship is for the investor to help provide needed capital, technology know-how and managerial capabilities to the investee enterprise, aiming to improve the overall position of the business. This study reviews, evaluates and analyses New ZealandâÂÂs foreign direct investment and its economic and social impacts. While the study discusses FDI from a generic perspective, the analytical perspective focuses on New ZealandâÂÂs FDI sources, framework, sectorial investment, role, impact and effects on New ZealandâÂÂs economy and society. It presents a descriptive quantitative and qualitative in-depth analytical review of New ZealandâÂÂs foreign direct investment and its social and economic implications. While the study concludes that FDI is most beneficial to New ZealandâÂÂs economy and society, it also highlights the shortcomings of FDI in New Zealand if checks are not made.