Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy
This study investigates the impact of conflict and insecurity on foreign direct investment (FDI) inflows and socio-economic development in Nigeria from 1983 to 2013. It explores the dynamics between Nigeria's economic growth, marked by becoming Africa's largest economy in 2014, and...
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| Format: | Article |
| Language: | English |
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Danubius University
2023-12-01
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| Series: | Acta Universitatis Danubius: Oeconomica |
| Subjects: | |
| Online Access: | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2578 |
| _version_ | 1797342351518072832 |
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| author | Olatunbosun Ayo Falana Olaniyan Niyi Oladipo Olalekan Ademola Adedun James Segun Ogundele |
| author_facet | Olatunbosun Ayo Falana Olaniyan Niyi Oladipo Olalekan Ademola Adedun James Segun Ogundele |
| author_sort | Olatunbosun Ayo Falana |
| collection | DOAJ |
| description |
This study investigates the impact of conflict and insecurity on foreign direct investment (FDI) inflows and
socio-economic development in Nigeria from 1983 to 2013. It explores the dynamics between Nigeria's
economic growth, marked by becoming Africa's largest economy in 2014, and the challenges posed by
decades of conflicts, using the theoretical framework of Conflict Theory. The research employs an ARDL
bounds testing approach to analyze the relationships between FDI and key economic indicators,
concluding that trade openness significantly attracts FDI, while conflict notably deters it. Despite the
negative impact of conflict, the positive role of a larger GDP on FDI affirms the Size-of-Market
Hypothesis, suggesting that Nigeria's market size continues to appeal to foreign investors. The study's
findings have implications for policy, emphasizing the need for economic liberalization, political stability,
and conflict resolution to foster a conducive investment environment. It highlights the necessity for
investors to assess political risks and suggests further research into additional factors influencing FDI.
Overall, the study underscores the importance of stability and growth-oriented policies for enhancing FDI
inflows, contributing to the discourse on economic development in emerging economies.
|
| first_indexed | 2024-03-08T10:32:02Z |
| format | Article |
| id | doaj.art-fb160694209444ab8b147c2289af6569 |
| institution | Directory Open Access Journal |
| issn | 2065-0175 2067-340X |
| language | English |
| last_indexed | 2024-03-08T10:32:02Z |
| publishDate | 2023-12-01 |
| publisher | Danubius University |
| record_format | Article |
| series | Acta Universitatis Danubius: Oeconomica |
| spelling | doaj.art-fb160694209444ab8b147c2289af65692024-01-27T04:44:49ZengDanubius UniversityActa Universitatis Danubius: Oeconomica2065-01752067-340X2023-12-01196Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's EconomyOlatunbosun Ayo Falana0Olaniyan Niyi Oladipo1Olalekan Ademola Adedun2James Segun Ogundele3Cardiff Metropolitan UniversitymrPeking UniversityEkiti State University This study investigates the impact of conflict and insecurity on foreign direct investment (FDI) inflows and socio-economic development in Nigeria from 1983 to 2013. It explores the dynamics between Nigeria's economic growth, marked by becoming Africa's largest economy in 2014, and the challenges posed by decades of conflicts, using the theoretical framework of Conflict Theory. The research employs an ARDL bounds testing approach to analyze the relationships between FDI and key economic indicators, concluding that trade openness significantly attracts FDI, while conflict notably deters it. Despite the negative impact of conflict, the positive role of a larger GDP on FDI affirms the Size-of-Market Hypothesis, suggesting that Nigeria's market size continues to appeal to foreign investors. The study's findings have implications for policy, emphasizing the need for economic liberalization, political stability, and conflict resolution to foster a conducive investment environment. It highlights the necessity for investors to assess political risks and suggests further research into additional factors influencing FDI. Overall, the study underscores the importance of stability and growth-oriented policies for enhancing FDI inflows, contributing to the discourse on economic development in emerging economies. https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2578Foreign Direct Investment (FDI). Conflict and Economic Growth, Trade Openness. Political Stability, Economic Policy in Nigeria |
| spellingShingle | Olatunbosun Ayo Falana Olaniyan Niyi Oladipo Olalekan Ademola Adedun James Segun Ogundele Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy Acta Universitatis Danubius: Oeconomica Foreign Direct Investment (FDI). Conflict and Economic Growth, Trade Openness. Political Stability, Economic Policy in Nigeria |
| title | Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy |
| title_full | Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy |
| title_fullStr | Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy |
| title_full_unstemmed | Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy |
| title_short | Impact of Conflict on Foreign Direct Investment and Socio-Economic Development: A 30-Year Analysis of Nigeria's Economy |
| title_sort | impact of conflict on foreign direct investment and socio economic development a 30 year analysis of nigeria s economy |
| topic | Foreign Direct Investment (FDI). Conflict and Economic Growth, Trade Openness. Political Stability, Economic Policy in Nigeria |
| url | https://dj.univ-danubius.ro/index.php/AUDOE/article/view/2578 |
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