Determinants of Foreign Direct Investment in Nigeria: Political Factor Effects Revisited

ibrahim, waheed and Omoniyi, Benjamin (2011): Determinants of Foreign Direct Investment in Nigeria: Political Factor Effects Revisited. Published in: Journal of Social Sciences , Vol. Vol 3, No. No 1 (June 2012): pp. 34-46.

Abstract

The paper examines the determinants of Foreign Direct Investment (FDI) in Nigeria during 1970 – 2006. cointegration techniques reveal that the major determinants of FDI are market size, real exchange rate and political factor thereby validating theoretical expectations. Furthermore, simulations using impulse response and variance decomposition analysis suggest that uncontrolled trade liberalization must be avoided.

• Item Type: MPRA Paper
• Language: English
• Keywords: Keywords: FDI, Cointegration, Impulse response, variance decomposition
• Subjects: E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy; E - Macroeconomics and Monetary Economics > E2 - Consumption, Saving, Production, Investment, Labor Markets, and Informal Economy > E22 - Investment ; Capital ; Intangible Capital ; Capacity

References

Akinlo A.E(2004) “Foreign Direct Investment and Growth in Nigeria: An Empirical Investigation” Journal of Policy modeling 26:627-639.

Anyawu J.C.(1998) “An Econometric Investigation of determination of FDI in Nigeria(1970 -1996)” NES conference paper. 218-240.

Bannock G. (1971) The Juggernauts: The age of the Big Corporation. London: Weedenfield and Nicolson.

Behrman N.J. (1970) National Interests and Multinational Enterprises. Tension Among the North-Atlantic Countries Englewood Cliffs. Prentice Hall.

Central Bank of Nigeria, Statistical Bulletin various years.

Di Giovanni. J. (2005), “what Drives Capital Flows? The case of cross-border MPA Activity and Financial Deepening”. Journal of International Economics. 65.

Edozien E.G. (1968) “Linkages, direct foreign investment and Nigerian Economic Development”. The Nigerian Journal of economic and Social Science 10(2). 119-203.

Jos Santos (1970) The Structure of Dependence. American Economic Review Paper and Proceedings

Kindleberger C.P (1969) American Business Abroad, New Haven: Yale University Press.

Lall S. (1974) Less Developed Countries and Private Foreign Direct Investment: A review article World Development. Vol.2 No 4 and 5

Lim. E.G. (2001) “Determinants of, and the Relationship Between, FDI and Growth:| A summary of the recent literature.” IMF working paper 01\175.

Louis N.C (1998) “ Determination of FDI: An Error Correction Specification” Journal of economic and Social Studies .Vol.40 No1.

Oladipo. O.S. (1997) “Trade Liberalization and Economic Growth”. Ife Social Science Review Vol. 15 No 5 .

Oyinlola. O (1995) “External capital and Economic Development in Nigeria (1970-1991)” The Nigeria Journal of Economic and Social Studies 37(2&3) 205-221.

Streeton P and S. Lale (1973) Summary of methods and findings of study of private foreign manufacturing investment in six LDCO7 UNCTAD, Geneva May.

Streeton P.P (1973) The Multinational enterprise and the theory of development policy. World Development.

Weisskopf, T.E. (1972) Capitalism, underdevelopment and the future of the poor countries. In Economics and the World Order Bhagwati, J.N. ed. New York Macmillan.

World Bank (2003) Financial flows and the Developing countries. A World Bank Business Quarterly. Quarter 3

Vernon, R.(1971) “ Sovereignty At Bay: The Multinational spread at U.S Enterprises New York” : Basic Book .