Capital Flows Interactions in a Fragile State: Evidence from Nigeria

Temitope Joseph Laniran

African Journal of Economic Review, 2019, vol. 07, issue 01

Abstract: International transfers and foreign capital inflow remains a significant source of capital to fragile state economies and developing economies in general. These transfers include but not limited to official development assistance (ODA), remittances and foreign direct investment (FDI) among others. The main objective of this study is to empirically investigate the interactions between capital flows (Remittances, FDI and ODA) in a fragile state using the case of Nigeria. The study tests for the complementarity or substitutability among these capital flows with the Autoregressive Distributive Lag (ARDL) estimation technique, using data over the period 1980 to 2015. The study found that remittances complement both FDI and ODA. Also, the study found that FDI and ODA are substitutes. However, after testing whether the level of economic development affects the interactions of capital flows, the study found that the complementarity and substitution vanishes as level of economic development progresses.

Keywords: International; Development (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/285000/files/182551-465044-1-SM.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:afjecr:285000

DOI: 10.22004/ag.econ.285000

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().