Calming the Tide: Private Investment and Macroeconomic Uncertainty in Nigeria

Anthony Orji, Arinze Matthew Onyia and Emeka Gabriel Ani

Asian Journal of Empirical Research, 2013, vol. 3, issue 5, 633-653

Abstract: This study is undertaken to determine the relative impacts of the uncertainty of macroeconomic variables on investment and make policy recommendations that may help dampen their fluctuations. In the study, generalized autoregressive conditional heteroscedasticity (GARCH) model was applied in the estimation of uncertainty of the macroeconomic variables. In the analysis of the data, econometric results were obtained from cointegration test and ordinary least squares. Thus, the study revealed the following: (1) existence of long run relationship between some of the macroeconomic variables and investment, (2) possibility of convergence of the variables from the short run to the long run with slow speed of adjustment and (3) the uncertainty of most of the macroeconomic variables impact negatively on investment in Nigeria. The study recommends the use of appropriate policy instruments that will bring about macroeconomic stability which provide conducive and enabling environment for private investment to thrive.

Keywords: Private investment; Volatility; Inflation; Exchange rate; Economic growth (search for similar items in EconPapers)
Date: 2013
References: Add references at CitEc
Citations:

Downloads: (external link)
https://archive.aessweb.com/index.php/5004/article/view/3415/5456 (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:asi:ajoerj:v:3:y:2013:i:5:p:633-653:id:3415

Access Statistics for this article

More articles in Asian Journal of Empirical Research from Asian Economic and Social Society
Bibliographic data for series maintained by Robert Allen ().