Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration
Abstract This study investigates the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic s in Nigeria over the period 1983–2020. Having confirmed the long-run stable state among the variables, the symmetric estimates suggest that the FD...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
| Published: |
SpringerOpen
2022-06-01
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| Series: | Future Business Journal |
| Subjects: | |
| Online Access: | https://doi.org/10.1186/s43093-022-00131-x |
| _version_ | 1797669610235887616 |
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| author | Rowland Tochukwu Obiakor Kingsley Ikechukwu Okere Obumneke Bob Muoneke Nnamdi Chinwendu Nwaeze |
| author_facet | Rowland Tochukwu Obiakor Kingsley Ikechukwu Okere Obumneke Bob Muoneke Nnamdi Chinwendu Nwaeze |
| author_sort | Rowland Tochukwu Obiakor |
| collection | DOAJ |
| description | Abstract This study investigates the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic s in Nigeria over the period 1983–2020. Having confirmed the long-run stable state among the variables, the symmetric estimates suggest that the FDI inflow/outflow is significantly linked with economic growth both in the long and short run, while the asymmetric model suggests that the parameter estimates have asymmetric effects on economic growth during the economic crisis in Nigeria. Specifically, the positive shocks in FDI inflow/outflow generate a significant reducing impact on economic growth, while negative shocks in FDI inflow/outflow generate a significant increasing effect on economic growth. Based on this findings, the study suggests that policy option would need to generate more economic activities that would improve net inflow/outflow and cushion the effect of future crisis. |
| first_indexed | 2024-03-11T20:46:56Z |
| format | Article |
| id | doaj.art-f8a9850ebe2b4772aecbe429c4983d75 |
| institution | Directory Open Access Journal |
| issn | 2314-7210 |
| language | English |
| last_indexed | 2024-03-11T20:46:56Z |
| publishDate | 2022-06-01 |
| publisher | SpringerOpen |
| record_format | Article |
| series | Future Business Journal |
| spelling | doaj.art-f8a9850ebe2b4772aecbe429c4983d752023-10-01T11:16:52ZengSpringerOpenFuture Business Journal2314-72102022-06-018111510.1186/s43093-022-00131-xAccounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integrationRowland Tochukwu Obiakor0Kingsley Ikechukwu Okere1Obumneke Bob Muoneke2Nnamdi Chinwendu Nwaeze3Department of Economics, Babcock UniversityDepartment of Economics, Banking and Finance, Gregory UniversityDepartment of Finance, University of LagosDepartment of Economics, Abia State UniversityAbstract This study investigates the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic s in Nigeria over the period 1983–2020. Having confirmed the long-run stable state among the variables, the symmetric estimates suggest that the FDI inflow/outflow is significantly linked with economic growth both in the long and short run, while the asymmetric model suggests that the parameter estimates have asymmetric effects on economic growth during the economic crisis in Nigeria. Specifically, the positive shocks in FDI inflow/outflow generate a significant reducing impact on economic growth, while negative shocks in FDI inflow/outflow generate a significant increasing effect on economic growth. Based on this findings, the study suggests that policy option would need to generate more economic activities that would improve net inflow/outflow and cushion the effect of future crisis.https://doi.org/10.1186/s43093-022-00131-xLinear and nonlinearFDIEconomic crisisCOVID-19Economic growthCobb–Douglas |
| spellingShingle | Rowland Tochukwu Obiakor Kingsley Ikechukwu Okere Obumneke Bob Muoneke Nnamdi Chinwendu Nwaeze Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration Future Business Journal Linear and nonlinear FDI Economic crisis COVID-19 Economic growth Cobb–Douglas |
| title | Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration |
| title_full | Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration |
| title_fullStr | Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration |
| title_full_unstemmed | Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration |
| title_short | Accounting for the symmetric and asymmetric effects of FDI-growth nexus amidst financial crises, economic crises and COVID-19 pandemic: application of hidden co-integration |
| title_sort | accounting for the symmetric and asymmetric effects of fdi growth nexus amidst financial crises economic crises and covid 19 pandemic application of hidden co integration |
| topic | Linear and nonlinear FDI Economic crisis COVID-19 Economic growth Cobb–Douglas |
| url | https://doi.org/10.1186/s43093-022-00131-x |
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