Asymmetric evidence of foreign direct investment response to stock returns in Nigeria

Joel Ede Owuru () and Olumuyiwa Samuel Oladele ()
Additional contact information
Joel Ede Owuru: Augustine University, Ilara-Epe
Olumuyiwa Samuel Oladele: Augustine University, Ilara-Epe

Future Business Journal, 2023, vol. 9, issue 1, 1-14

Abstract: Abstract This study examines the response of foreign direct investment (FDI) to asymmetric changes in stock returns in Nigeria. We employed disaggregated monthly data for Nigeria (1985M01–2017M12) to test the magnitude of stock returns’ elasticity of FDI using a nonlinear ARDL modelling framework. By controlling for exchange rate and output size, evidence of asymmetric response of FDI to stock market returns in Nigeria could not be denied. Hence, sustainable development in Nigeria requires a long-run balance between FDI and Stock market through a stable exchange rate management system and efficiency of the capital market is necessary for increased FDI.

Keywords: Foreign direct investment; Stock returns; Nonlinear autoregressive distributed lag (search for similar items in EconPapers)
JEL-codes: C50 E32 F21 G11 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1186/s43093-023-00194-4 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:futbus:v:9:y:2023:i:1:d:10.1186_s43093-023-00194-4

Ordering information: This journal article can be ordered from
https://fbj.springeropen.com/

DOI: 10.1186/s43093-023-00194-4

Access Statistics for this article

Future Business Journal is currently edited by Soad Kamel Rizk and Hayam Wahba

More articles in Future Business Journal from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().