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

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  • ibrahim, waheed
  • Omoniyi, Benjamin

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.

Suggested Citation

  • ibrahim, waheed & Omoniyi, Benjamin, 2011. "Determinants of Foreign Direct Investment in Nigeria: Political Factor Effects Revisited," MPRA Paper 59429, University Library of Munich, Germany, revised 2012.
    • Handle: RePEc:pra:mprapa:59429
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    File URL: https://mpra.ub.uni-muenchen.de/59429/1/MPRA_paper_59429.pdf
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    References listed on IDEAS

    as
    1. di Giovanni, Julian, 2005. "What drives capital flows? The case of cross-border M&A activity and financial deepening," Journal of International Economics, Elsevier, vol. 65(1), pages 127-149, January.
    2. Dos Santos, Theotonio, 1970. "The Structure of Dependence," American Economic Review, American Economic Association, vol. 60(2), pages 231-236, May.
    3. Lall, Sanjaya, 1974. "Less-developed countries and private foreign direct investment: A review article," World Development, Elsevier, vol. 2(4-5), pages 43-48.
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    Citations

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    Cited by:

    1. Olawumi Dele Awolusi, 2012. "Forecasting international technology transfer and international trade in Nigeria: a time series analysis," International Journal of Management and Network Economics, Inderscience Enterprises Ltd, vol. 2(3), pages 282-297.
    2. Okpara, Godwin Chigozie, 2012. "An Error Correction Model Analysis of the Determinant of Foreign Direct Investment: Evidence from Nigeria," MPRA Paper 36676, University Library of Munich, Germany, revised 14 Feb 2012.
    3. George Owusu-Antwi & Dwobeng Owusu Nyamekye & Patrick Ofei & Frederick A. Aikens, 2019. "Foreign Direct Investment: Is Natural Resources the Rejoin? Evidence from Ghana, Nigeria, and Togo: Fixed Effect Approach," International Journal of Asian Social Science, Asian Economic and Social Society, vol. 9(12), pages 588-606, December.

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    More about this item

    Keywords

    Keywords: FDI; Cointegration; Impulse response; variance decomposition;
    All these keywords.

    JEL classification:

    • E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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