The Effects of Manufacturing Sector Output on Environmental Sustainability in Nigeria from 1990 to 2019 (Published)
The study examined the effects of manufacturing sector output on environmental sustainability in Nigeria from 1990 to 2019. The variables used in the study are CO2 emissions as the dependent variable, and manufacturing sector output as the independent variable, with foreign direct investment, electricity production and population density applied as control variables. Co-integration tests indicated the presence of a long-run relationship among the variables of the study. The study employed the Autoregressive Distributed Lag Model (ARDL) for regression analysis. The result of the regression analysis indicates that the second lagged period of CO2 emissions has a negative impact on CO2 emissions in the current period. Also, manufacturing output has an insignificant effect on the rate of carbon dioxide emissions in Nigeria, both in the first and second lagged periods. However, electricity production has a significant effect on CO2 emissions in Nigeria. In addition, among the control variables of the study (FDI, PPD and EPD), foreign direct investment exhibits an insignificant effect on environmental sustainability in Nigeria. The study recommends that the government institutes and empowers environmental regulatory agencies that will help check environmentally harmful practices by manufacturing firms and industrial areas in the country.
Keywords: CO2 emissions, Foreign Direct Investment, Population density, electricity production, manufacturing sector output
Empirical Analysis of Agricultural Foreign Direct Investment on Capital Market Performance in Nigeria (1981-2018) (Published)
There is a widespread perception that Foreign Direct Investment (FDI) aids economic growth in Nigeria evident by various contributions made by researchers on this phenomenon, but these attendant benefits must be transmitted through one of the viable real sectors, and one of such sectors is the agricultural sector. Understanding the linkage between the flows of foreign direct investment to agricultural sector as if affects capital market becomes imperative since the capital market enhances financial stability in the country. Using descriptive analysis, Augmented Dickey-Fuller (ADF), parsimonious error correction model, this paper therefore examined the effect of agricultural foreign direct investment on capital market performance in Nigeria from 1981 -2018. Basically data used in this study are exchange rate, trade openness, agricultural foreign direct investment and total market capitalization sourced from Central Bank of Nigeria(CBN) statistical bulletin 2018, The result obtained shows that the inflow of FDI to agricultural sector does not follow a regular pattern as agricultural FDI has long run positive relationship with capital market performance, exchange rate has negative relationship with the explained variable, trade openness also maintained a slow but positive relationship with capital market performance. The study concluded that there exist relationship between the phenomenons of the study, based on these findings, it is recommended that there is need for the government to device several means that would motivate the foreign investors to diversify their investment from oil sector to the agricultural sector since it has a positive influence on the capital market performance. Secondly, government needs to redesign the existing exchange rate policy and ensure full implementation of policy that would revive the value of our local currency.
Citation: Eze Gbalam Peter and Okoyan Krokeme (2021) Empirical Analysis of Agricultural Foreign Direct Investment on Capital Market Performance in Nigeria (1981-2018), European Journal of Accounting, Auditing and Finance Research, Vol.9, No. 7, pp.20-37
Keywords: Agricultural Sector, Exchange Rate, Foreign Direct Investment, capital market performance.
Influence of Foreign Direct Investment on Economic Growth in Nigeria (1989- 2019) (Published)
The aim of this study is to determine the Influence of Foreign Direct Investment in Economic Growth and Deployment of Nigeria. The study employed Ordinary Least Square (OLS) method of estimation using multiple regression analysis. The data generated for this study comprises of Foreign Direct Investment (FDI), Real Gross Domestic Product (RGDP) and Exchange Rate (EXR). The data was sourced from Central Bank of Nigeria statistical bulletin spanning the period of 1989-2019 (30years). We found that FDI has positive and significant influence on real economic growth. EXR also has positive and significant impact on economic growth in Nigeria. Results also showed that the overall regression is significant at 5% level of significance given that the F-statistic is 0.0000 which is less than 0.05. Based on the results, the study recommends an improvement in the level of institutional development on which the inflow of FDI is based. The study also recommends that government should as a matter of urgency takes appropriate measures in order to stabilize the exchange rate that may attract more investors in the country for desired economic growth and Development.
Keywords: Foreign Direct Investment, Real Gross Domestic Product, exchange rate and economic growth.
Tax Rates and Foreign Direct Investments in Sub-Sahara Africa, (Published)
The relevance of foreign direct investments (FDIs) in sub-Sahara Africa has been more overstated in recent years. The benefits it attracts cannot be quantified as it generally boosts a nation’s economy and standard of living. The volume of the influx of Foreign Direct Investments is, however, dependent on various factors. One of the numerous considerable factors includes Tax rates. Tax rates are the percentages at which an individual or corporation is taxed. The rates of tax can either positively or negatively affect the inflow of Foreign Direct Investments (FDIs) in a country. This study is carried out to examine the relationship and effect of tax rates with/on Foreign Direct Investments (FDIs), finding out if Value Added Tax is adversely related with FDI, if Personal Income Tax and Corporate Income Tax are significantly associated with FDI, and if Tax rates are major determinants of FDI in sub-Sahara Africa. Data was obtained from UNCTAD reports, World Bank reports, and Trading Economics reports. Multiple regression and correlation analysis were used to carry out analysis. From the analysis, it was discovered that Value Added Tax has an adverse and significant relationship with FDIs, Personal Income Tax rates has a negative and insignificant relationship with FDIs, and Corporate Income Tax rates has a positive but insignificant relationship with FDIs. It was also derived from the analysis that rates of tax do not majorly and significantly affect the inflows of Foreign Direct Investments (FDIs). It is recommended that the governments and tax regulatory bodies of every country should emphasize the importance of the tax rates in attracting foreign direct investments and foreign investors should also support tax rates by considering it more when investing in other countries.
Keywords: Africa, Foreign Direct Investment, Taxation
Effect of Foreign Direct Investment on Exchange Rate of Naira: A Multi-Sectoral Analysis (Published)
This study examines the effect of foreign direct investment on exchange rate of naira. It covers the period between 1990 and 2016. The unusual depreciation of the naira accompanied by the declining trend of foreign direct investment inflows among other things necessitated this study. Ordinary Least Square Regression Analysis was used to estimate the model relationships. It made use of time series secondary data with five explanatory variables (FDI inflows to Agriculture, forestry and fishery, building and construction, manufacturing and processing, mining and quarrying and transport and communication) and one dependent variable (Exchange Rate). The data were sourced from Central Bank of Nigeria (CBN) statistical bulletin, World Bank Data and Journal Articles. Tests that were carried out include Unit Root Test, Co-integration test and Granger Causality test. The study reveals that there is a positive significant effect of FDI inflow to building and construction on real exchange rate; there is a positive significant effect of FDI inflows to mining and quarrying on real exchange rate and there is a positive significant effect of FDI inflows to transport and communication on real exchange rate. However, there is an universe effect of FDI inflows to agriculture, forestry, fishery on real exchange rate and an inverse effect of FDI inflows to manufacturing and processing on real exchange rate. Based on these findings, the study recommends: massive investment of local investors in the agricultural and manufacturing sectors to strengthen the exchange rate of naira and also serious efforts to increase foreign direct investment inflows in the building, mining and transport sectors in Nigeria be sustained and improved upon to have a strong exchange rate of naira.
Keywords: Depreciation, Exchange Rate, Foreign Direct Investment, Naira, Study, building and construction, inflows, manufacturing and processing, mining and quarrying
Impact of Foreign Direct Investment on Economic Development in Nigeria (Published)
This study was carried out to ascertain the impact of foreign direct investment on economic development in Nigeria between 1981 and 2018. Data employed for this study was elicited from World Bank Data Base-World Developmental Indicators of 2018 and Central Bank of Nigeria Statistical Bulletin of 2018. This study employed gross fixed capital formation as proxy for economic development in Nigeria, and exchange rate was employed as a controlled variable while data on foreign direct investment inflow to Nigeria was adopted as the explanatory variable. This study employed Auto Regressive Distributed Lag (ARDL) Model to analyze data; other diagnostic tests such as: stability test, Auto correlation test, Heteroskedasticity test and Breusch-Godfrey Serial Correlation LM test were also carried out and they confirmed the validity and reliability of the model employed. The inferential results pointed out that foreign direct investment impacted positively but insignificantly on economic development in Nigeria between 1981 and 2018. These results also conform to apriori economic expectations. The study recommended that government of Nigeria should provide enabling environment that will be conducive for doing business, so as to attract additional inflow of foreign direct investment. Government can provide enabling business environment by provision of steady supply of electricity and ameliorating or exterminating insurgent activities in the country and restore confidence of investors to come into Nigeria and invest, when this is done, the volume of foreign direct investment into Nigeria would increase and would enhance exports thereby reducing exchange rate.
Keywords: Economic Development, Exchange Rate, Foreign Direct Investment, gross fixed capital formation and auto regressive distributed lag (ARDL) model.
Fluctuation Rate Analysis of Rupiah Exchange in the Indonesian Open Economy (Published)
This research aimed to analyze the long-term balance between KURS (Rate of Exchange), inflation (INF), Foreign Direct Investment (FDI), interest rate of Bank Indonesia (SBI), and the degree of openness of Economics (DKE) An open economy Indonesia using time series data period 1998: 1-2016: 4. Models Autoregressive Distributed Lag (ARDL) was used to observe the effect of these variables. The results show that there is a balance of long-term fluctuations in the exchange Rate against the US dollar which is influenced by the variable inflation and SBI are negatively correlated with the exchange rate. While the FDI variable and the degree of economic openness is positively correlated with the exchange rate. The degree of openness of the economy, inflation, FDI leads to fluctuations on the exchange rate. In the long term, SBI gives a significant effect on the exchange rate. Among the exchange rate with the degree of economic openness has a positive and significant impact. This means that increasing the degree of economic openness, it will result in the appreciated (US dollar depreciated). Economic openness leads to significant fluctuations in exchange rates in the short term and long term.
Keywords: Autoreggressive Distribured Lag (ARDL), Degree of Openness, Exchange rate rupiah/US $, Foreign Direct Investment, Inflation, Interest Rate of Bank Indonesia
IMPACT OF THE NIGERIAN CAPITAL MARKET ON THE ECONOMY (Published)
There are elements upon which a nations’ economic development are dependent. The importance of Capital Market as one of the vehicles upon which most under-developed economies could grow cannot be overemphasized. The extent to which these economies experience the said growth is quite relative to the level of awareness and management of the market. Nigeria is not left out in the desire to maximize the gains of the capital market to boost its economy. This paper empirically examines the impact of the Nigerian Capital Market on the Nigerian economy looking at a 20 years period from 1992 to 2011. The Nigerian Capital Market was proxy as Market Capitalization against some variables of the economy such as Gross Domestic Product (GDP), Foreign Direct Investment, Inflation Rates, Total New Issues, Value of Transaction and Total Listing. Using the multiple regression analysis, we find that Capital Market has an insignificant impact on the Economy within the period under review. The study therefore advised that policies and measures that would boost investors’ confidence should be enshrined in the running of Nigerian Capital Market so that it could contribute significantly to the growth of Nigerian economy noting that all elements of the market are essential ingredients to the development of a nation.
Keywords: Capital market, Foreign Direct Investment, GDP, Inflation Rate, Total new issues, Value of Transaction, and Total listing