The Short and Long Run Determinants of Foreign Direct Investment in Nigeria

What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was inve...

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Autor principal:	Oludayo Elijah Adekunle
Formato:	article
Lenguaje:	AR EN
Publicado:	Ziane Achour University of Djelfa 2020
Materias:	ardl causality economic policies foreign direct investment Social Sciences H Commerce HF1-6182
Acceso en línea:	https://doaj.org/article/730509047f5f43f1a64e0b35790d6a57
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spelling	oai:doaj.org-article:730509047f5f43f1a64e0b35790d6a572021-12-02T13:31:53ZThe Short and Long Run Determinants of Foreign Direct Investment in Nigeria2676-184X2710-885610.48100/merj.v2i4.124https://doaj.org/article/730509047f5f43f1a64e0b35790d6a572020-09-01T00:00:00Zhttps://mer-j.com/merj/index.php/merj/article/view/124https://doaj.org/toc/2676-184Xhttps://doaj.org/toc/2710-8856What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was investigated from 1986 to 2018. Data were analyzed with Augmented Dickey-Fuller and Philip Perron unit root test, Autoregressive Distributed Lag and Pairwise Granger Causality techniques. Evidence of long run dynamic equilibrium relationship was established between foreign direct investment and its determinants. The short and long run coefficients revealed that government capital expenditure and inflation impede the inflow of foreign direct investment both in the short and long run while exchange rate serve as bane to foreign direct investment in the long run. However, gross domestic product and trade openness were found to stimulate the inflow of foreign direct investment in the short and long run. The Pairwise causality result revealed that government capital expenditure, exchange rate and trade openness had independent causality with foreign direct investment while gross domestic product and inflation rate had unidirectional causality with foreign direct investment. Thus, government should allocate more funds for the provision of enabling and investment enhancing environment to promote foreign direct investment inflow. The study added value to previous studies by estimating the short and long run determinants of foreign direct investment using more dynamic and robust technique of Autoregressive Distributed Lag developed by Peseran and Shin (1999). JEL Codes: C32, F21.Oludayo Elijah AdekunleZiane Achour University of Djelfaarticleardlcausalityeconomic policiesforeign direct investmentSocial SciencesHCommerceHF1-6182ARENمجلة بحوث الإدارة والاقتصاد, Vol 2, Iss 4, Pp 45-65 (2020)
institution	DOAJ
collection	DOAJ
language	AR EN
topic	ardl causality economic policies foreign direct investment Social Sciences H Commerce HF1-6182
spellingShingle	ardl causality economic policies foreign direct investment Social Sciences H Commerce HF1-6182 Oludayo Elijah Adekunle The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
description	What determines foreign direct investment inflows has been a subject of controversies among scholars. As a result of the highlighted gap discussed in this study, the short and long run determinants of foreign direct investment and their effects on foreign direct investment inflow in Nigeria was investigated from 1986 to 2018. Data were analyzed with Augmented Dickey-Fuller and Philip Perron unit root test, Autoregressive Distributed Lag and Pairwise Granger Causality techniques. Evidence of long run dynamic equilibrium relationship was established between foreign direct investment and its determinants. The short and long run coefficients revealed that government capital expenditure and inflation impede the inflow of foreign direct investment both in the short and long run while exchange rate serve as bane to foreign direct investment in the long run. However, gross domestic product and trade openness were found to stimulate the inflow of foreign direct investment in the short and long run. The Pairwise causality result revealed that government capital expenditure, exchange rate and trade openness had independent causality with foreign direct investment while gross domestic product and inflation rate had unidirectional causality with foreign direct investment. Thus, government should allocate more funds for the provision of enabling and investment enhancing environment to promote foreign direct investment inflow. The study added value to previous studies by estimating the short and long run determinants of foreign direct investment using more dynamic and robust technique of Autoregressive Distributed Lag developed by Peseran and Shin (1999). JEL Codes: C32, F21.
format	article
author	Oludayo Elijah Adekunle
author_facet	Oludayo Elijah Adekunle
author_sort	Oludayo Elijah Adekunle
title	The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
title_short	The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
title_full	The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
title_fullStr	The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
title_full_unstemmed	The Short and Long Run Determinants of Foreign Direct Investment in Nigeria
title_sort	short and long run determinants of foreign direct investment in nigeria
publisher	Ziane Achour University of Djelfa
publishDate	2020
url	https://doaj.org/article/730509047f5f43f1a64e0b35790d6a57
work_keys_str_mv	AT oludayoelijahadekunle theshortandlongrundeterminantsofforeigndirectinvestmentinnigeria AT oludayoelijahadekunle shortandlongrundeterminantsofforeigndirectinvestmentinnigeria
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The Short and Long Run Determinants of Foreign Direct Investment in Nigeria

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