International Journal of Development and Economic Sustainability (IJDES)

EA Journals

Foreign Direct Investment

Impact of Insecurity on Nigerian Economic Growth and Development (Published)

This paper examines insecurity challenges and implications on business activities, economic growth and economic development of Nigeria. The study was designed as ex-post factor research, with time series data sourced from official and government publications; spanning from 2009 to 2022. The variables used for the study were sourced after adequate considerations of extant literature and objectives of the study. In meeting with the objectives of the study, we logically break-up the data into pre-high insecurity period (2009- 2015) and high insecurity period (2016- 2022). Four hypotheses were formulated and tested using t-test, f-test; and Cho-test was used to test the variance between the two time periods under study. The study found that insecurity hampers Business Activities (BA) but does not have significant influence on Economic Growth (EG) and Economic Development (ED) of Nigeria; and concluded that national insecurity must be of high consideration as business activities blossom in a secure environment, which ultimately ensures sustainable economic growth and development. We therefore recommend a synthesis of composite security management approach model and two-way approach model in addressing the ills of insecurity in ensuring Nigeria economic sustainability.

Citation: Agogbua, Stanley Ndubisi;  Mgbatogu, Chukwudi D. and Nzewi, Ugochukwu C. (2022)  Impact of Insecurity on Nigerian Economic Growth and Development, International Journal of Development and Economic Sustainability, Vol.10, No.5, pp.1-13

Keywords: Economic Development, Foreign Direct Investment, Gross Domestic Product, Insecurity, Per Capita Income, business activities, economic growth

Foreign Direct Investment and Revenue Generation in Nigeria (1970-2018) (Published)

This study examined the effect of Foreign Direct Investments flow to agriculture, manufacturing and processing, and mining and quarrying subsectors of the Nigerian economy on revenue generation in Nigeria proxied by company income tax and petroleum profit. The six hypotheses that guided the study were formulated in line with the stated objectives and relevant theoretical as well as empirical literature were reviewed and evaluated. The relevant data were extracted from the annual statistical bulletin of the central Bank of Nigeria. Unit root tests were carried out using Augmented Dickey Fuller method which revealed that the variables were integrated at different orders. The autoregressive distributive lag/bound test was used to explore the long run relationship existing among the variables in each model and the result of the bound test showed that the variables in the two models are co-integrated thus the study proceeded in evaluating the long run as well as the co-integrating form in each model. It was found that Foreign Direct Investments to agriculture does not enhance the generation of company income tax and petroleum profit tax in Nigeria in the long run as its coefficient turned out negative and insignificant whereas the coefficient of manufacturing and processing was positive but not significant in relations with company income tax, but negative and non-significant with respect to petroleum profit tax. Going further, Foreign Direct Investments to mining and quarrying had positive and significant relationship with both company income tax and petroleum profit tax generation in Nigeria.  The study recommended that Government can by the use of moral suasion; appeal to foreign investors to plough back about 70% of their earnings so as to expand their output as such expansion will invariably increase the company income tax and petroleum profit tax revenues of government. Tax holidays should be granted to investors in Agriculture and Manufacturing and Processing sectors so as to encourage Foreign Direct Investments inflow to these sub-sectors which will no doubt increase output, stimulate growth and increase the government tax revenue generation capacity in Nigeria.

Keywords: Agricultural Sector, Company Income Tax, Foreign Direct Investment, Manufacturing sector, Petroleum Profit Tax, mining and quarrying sector

Does Real Exchange Rate Volatility Matters For Foreign Direct Investment (FDI) Inflow? An Empirical Reflection of the Nigerian Situation (Published)

The research has been on the Real Exchange Rate (RER) and Foreign Direct Investment (FDI) inflow.  This has become necessary given the declining competitiveness of the Nigeria currency and  economy.  The study covered the period between 1981 and 2017.  The Cointegration and the Error correction Model of the Ordinary least squares technique were used to analyze the data. The result of the Augmented Dickey Fuller (ADF) unit root test indicates that the variables became stationary after the first difference was taken.  The Johansen Cointegration test indicates a long run equilibrium relationship among the variables.  Also the result of the parsimonious Error Correction Model (ECM) indicates that the volatility of the Real Exchange Rate (RER) has a negative and significant impact on the inflow of Foreign Direct Investment (FDI) into Nigeria. The openness of the economy has a positive and significant relationship with the Foreign Direct Investment (FDI). The interest rates has a negative and significant impact on the Foreign Direct Investment (FDI) inflow.  It was therefore recommended amongst others  that the government should not only concentrate on the  manipulation of the exchange rate but should make concerted efforts to diversify the productive base of the economy so as to increase the competiveness of the Nigerian economy and hence its currency.

Keywords: Cointegration, Foreign Direct Investment, Real Exchange Rate, Real Exchange Rate Volatility

Real Effective Exchange Volatility and Fdi Sustainability: Implications for the Nigerian Economy (Published)

The paper investigates the empirical evidence of Real Effective Exchange Rate Volatility and FDI inflow into Nigeria. The vital role of FDI in bridging the development gap and the impediment caused by the volatility in the Real Effective Exchange Rate have been attested to by various literature There has been no consensus by studies in this issue as regards whether Real Effective Exchange Rate volatility has a negative or positive effect on the FDI. In addition, the investigation of such relationship has been grossly ignored in the Nigerian literature The main objective is thus to empirically investigate the relationship between the volatility in the Real Effective Exchange Rate and the level of FDI in Nigeria. The study covered the period between 1981 and 2016. The Ordinary Least Squares technique was used in analyzing the data. Specifically, the ECM and the cointegration models were adopted. The results indicate that the one period lagged FDI has a significant and positive impact on the current FDI. The REER has an insignificant and positive impact on the FDI. The REERV has a significant and negative impact on the FDI. The result indicates further that the REERV has a negative and significant impact on the FDI. Openness of the economy o has a positive and significant impact on the REER The paper recommends a production based devaluation of the Nigerian REER.     

Keywords: Error Correction Mechanism, Foreign Direct Investment, Real Effective Exchange Rate, Real Effective Exchange Rate volatility, openness

The Attractiveness of Investment in the Arab Countries: Comparative Study (Published)

The flow of investments in developing countries differs across countries. We have been focusing on this research on foreign direct investment as one type of foreign investment due to the lack of capital markets in some Arab countries. Investment comprises foreign direct investment (FDI) their role is one of these kinds of investments that inflows have provided the strong impetus for economic development across countries. The paper tries to make a comparison between Poland and some Arab countries in stability period in Arab region 2005-2010. The results show that the Poland has the higher attractive investment while in key determinants factors some Arab countries are in better position than Poland.

Keywords: Arab Countries, Attractive Investment, Composite indicator, Foreign Direct Investment, Key determinate’s, Poland

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