There is increasing inflows of FDI into developing economies; yet, systematic studies on determinants of FDI in developing economies are scarce. Against this backdrop, this study examined three key issues nan1ely; the role of government, the impact of institutions and macroeconomic factors on inward FDI in Nigeria. The study used annual data collected from CBN, UNCTAD, World Bank and PRS group. To achieve the first objective, the study grouped the government investment policy changes adopted over the period 1962- 2012 into three major phases: limited promotion (1962- 1969), restrictive practice (1970-1985) and liberal policies and reform phases (1986- 2012). Impact and implications of government foreign investment policies on trends of FDI inflows into Nigeria was examined using trend analysis. The study found that annual growth rate of total inward FDI was highest during the liberal policy and reform phase, and was least during the restrictive practice phase. The study also found that annual growth rate of inward FDI was: higher in the oil sector than in the non-oil sector during the SAP era (1986-1994), higher in the non-oil sector than in the oil sector after NIPC reform (1995- 2012), and annual growth rate of total inward FDI was higher during the SAP era (1986- 1994) than after the NIPC reform (1995- 201 2). The study used CCR and FMOLS regressions models to analyse the second and third objectives and showed that political instability, easing bureaucratic impediments, democratic accountability, government expenditure, trade openness and market size had positive and significant impact on inward FDI in Nigeria. Finding on interest rate was inconclusive and exchange rates have negative and significant impact on inward FDI in Nigeria. However, high inflation has a negative and insignificant impact on inward FDI while investment risks have positive and insignificant impact on inward FDI in Nigeria.
| Identifer | oai:union.ndltd.org:bl.uk/oai:ethos.bl.uk:687399 |
| Date | January 2015 |
| Creators | Emudainohwo, Ochuko Benedict |
| Publisher | Glasgow Caledonian University |
| Source Sets | Ethos UK |
| Detected Language | English |
| Type | Electronic Thesis or Dissertation |
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