The role of a legal system in the improvement of a country’s economy in relation to foreign investment

• Jurisdiction: South Africa
• Published date: 22 May 2020
• Citation: (2019) 5(2) JCCL&P 44
• Pages: 44-56
• Author: Ajudua, P.A.
• Date: 22 May 2020

44

THE ROLE OF A LEGAL SYSTEM

IN THE IMPROVEMENT OF A

COUNTRY’S ECONOMY IN RELATION

TO FOREIGN INVESTMENT

PRINCESS PAT. ADA AJUDUA*

Legislator, Delta State House of Assembly, Asaba, Nigeria

ABSTRACT

This paper examines the role of a legal system in the improvement

of a country’s economy in relation to foreign investment. The

study has adopted a descriptive and analytical design, using a

doctrinal methodology. It analyses the thematic problem of the

investment climate issue in Nigeria, improvement in the mechanism

for the resolution of investment arbitrations in Nigeria, and the

expropriation in foreign investment and the settlement of investment

disputes in Nigeria. Finally, the paper argues that the current wave

of globalisation sweeping through the world has intensified the

competition for FDI among developing countries. Consequently,

concerted efforts are needed at national, regional, and international

levels in order to attract significant investment flows to Nigeria and

improve the prospects for sustained growth and development.

Keywords: legal system; economy; foreign investment; economic

development

I INTRODUCTION

The economic growth and development of a country can always be

traced to the quantity of investment the country is able to attract.

Foreign investment is one of the cornerstones of economic and

industrial development and since Nigeria became independent

in 1960, its failure to attract enough foreign investment has been

based on the general investment climate and enabling economic

environment.1 Attempts to attract direct or indirect foreign

investments have not succeeded in making Nigeria economically

market independent. The World Bank in its Investment Climate

* BA, LLB, LLM, MBA, PhD

1 Some of the countries which became independent at nearly the same time are

Ghana, Brazil, India and Pakistan.

(2019) 5(2) JCCL&P 44

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