FDI Inflow and Insecurity in Nigeria: An Empirical Analysis
This paper empirically examines the impact of defence and security on foreign direct investment (FDI) in Nigeria using quarterly historical data covering the period of 1994q1-2019q4 and an ARDL and VAR econometric techniques are adopted as tools of data analysis. The results from both econometric a...
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| Format: | Article |
| Language: | English |
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Danubius University
2022-10-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
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| Online Access: | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1704 |
| _version_ | 1797989438150672384 |
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| author | TIMILEHIN OLASEHINDE |
| author_facet | TIMILEHIN OLASEHINDE |
| author_sort | TIMILEHIN OLASEHINDE |
| collection | DOAJ |
| description |
This paper empirically examines the impact of defence and security on foreign direct investment (FDI) in Nigeria using quarterly historical data covering the period of 1994q1-2019q4 and an ARDL and VAR econometric techniques are adopted as tools of data analysis. The results from both econometric approaches revealed that foreign direct investment responds negatively to the exogenous occurrence of security threats both in the short and long runs. Also, economic instability and uncertainty are shown to cause drag in foreign direct investment inflow in Nigeria. This study further shows that economic liberalization, proxy with trade openness, and economic progress, proxy with the growth of gross domestic product per capita contribute immensely to the flow of foreign direct investment into Nigeria. The study recommendations drawn from the findings are that national security challenges should be addressed without delay by the government at all the tiers levels to change the course of the downward trend of FDI in Nigeria; establish risk adverting policy to reduce economic uncertainty; promote price stability policy to reduce economic instability; diversifying the economy to further increase economic progress which greatly drives FDI inflow, and encourage economic liberalization which brings benefit through market expansion.
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| first_indexed | 2024-04-11T08:20:19Z |
| format | Article |
| id | doaj.art-743865cab9fc4fbab900119f9f9837e3 |
| institution | Directory Open Access Journal |
| issn | 2065-0175 2067-340X |
| language | English |
| last_indexed | 2024-04-11T08:20:19Z |
| publishDate | 2022-10-01 |
| publisher | Danubius University |
| record_format | Article |
| series | Acta Universitatis Danubius: Oeconomica |
| spelling | doaj.art-743865cab9fc4fbab900119f9f9837e32022-12-22T04:34:59ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2022-10-01185FDI Inflow and Insecurity in Nigeria: An Empirical AnalysisTIMILEHIN OLASEHINDE0Federal University Oye-Ekiti This paper empirically examines the impact of defence and security on foreign direct investment (FDI) in Nigeria using quarterly historical data covering the period of 1994q1-2019q4 and an ARDL and VAR econometric techniques are adopted as tools of data analysis. The results from both econometric approaches revealed that foreign direct investment responds negatively to the exogenous occurrence of security threats both in the short and long runs. Also, economic instability and uncertainty are shown to cause drag in foreign direct investment inflow in Nigeria. This study further shows that economic liberalization, proxy with trade openness, and economic progress, proxy with the growth of gross domestic product per capita contribute immensely to the flow of foreign direct investment into Nigeria. The study recommendations drawn from the findings are that national security challenges should be addressed without delay by the government at all the tiers levels to change the course of the downward trend of FDI in Nigeria; establish risk adverting policy to reduce economic uncertainty; promote price stability policy to reduce economic instability; diversifying the economy to further increase economic progress which greatly drives FDI inflow, and encourage economic liberalization which brings benefit through market expansion. https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1704Insecurityforeign direct investmentuncertaintyinstabilitytrade openness |
| spellingShingle | TIMILEHIN OLASEHINDE FDI Inflow and Insecurity in Nigeria: An Empirical Analysis Acta Universitatis Danubius: Oeconomica Insecurity foreign direct investment uncertainty instability trade openness |
| title | FDI Inflow and Insecurity in Nigeria: An Empirical Analysis |
| title_full | FDI Inflow and Insecurity in Nigeria: An Empirical Analysis |
| title_fullStr | FDI Inflow and Insecurity in Nigeria: An Empirical Analysis |
| title_full_unstemmed | FDI Inflow and Insecurity in Nigeria: An Empirical Analysis |
| title_short | FDI Inflow and Insecurity in Nigeria: An Empirical Analysis |
| title_sort | fdi inflow and insecurity in nigeria an empirical analysis |
| topic | Insecurity foreign direct investment uncertainty instability trade openness |
| url | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/1704 |
| work_keys_str_mv | AT timilehinolasehinde fdiinflowandinsecurityinnigeriaanempiricalanalysis |