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ABSTRACT
Foreign direct investments are the net inflows of investments to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor. However foreign direct investment is determined by a number of factors. This study specifically looks at two determinants of FDI: Taxation policy and Governance. The study utilized annual data from the World Development Indicators (WDI) and the World Governance Indicators (WGI) from 1986-2019, a period adopted to answer the objectives of this study.The study found that Company Income Tax and Governance has a positive impact on Foreign Direct Investment.
The study recommends among other things for the government to set up policies in relation to Company Income Tax and and should also remove bottlenecks hampering the effective running of the government inorder to increase Foreign Direct Investment into the country.
