Drivers of Foreign Private Investment Inflows in Emerging Market: Evidence from Nigeria

Fagbola O. Oluwatobi (oluwatobi4success@gmail.com), Oke O. Babatunde (boke@unilag.edu.ng) and Esther O. Adegbite (eadegbite@unilag.edu.ng)
Additional contact information
Fagbola O. Oluwatobi: University of Lagos
Oke O. Babatunde: University of Lagos
Esther O. Adegbite: University of Lagos

Acta Universitatis Danubius. OEconomica, 2020, issue 16(6), 298-313

Abstract: In the globalized world with intense competition, emerging markets have attempted to attract more foreign private capital to bridge the dual gap and ultimately achieve their developmental goals. Against this backdrop, it has become imperative to ascertain the drivers of these inflows. This study advances the international private capital flows literature by empirically identifying the drivers of both foreign direct investment (FDI) and foreign private investment (FPI) inflows in Nigeria between 1986 and 2017. To achieve this objective, we employed the ARDL bounds test for cointegration. The estimated model revealed counts of the number of significant push and pull factors influencing the flows of FDI to Nigeria in the short run. The findings further revealed that countryspecific factors seem to be much more important than global factors in explaining the dynamics of FPI inflows to Nigeria both in the short-run and long-run. The policy inference of this study is that Nigerian policymakers should embrace a more open approach to international economic integration, combined with a proactive macroeconomic policy measure to managing the risks associated with volatile foreign private capital flows.

Keywords: ARDL; FDI; FPI; Domestic savings and macroeconomic policy (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
https://dj.univ-danubius.ro/index.php/AUDOE/article/view/228/950 (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:dug:actaec:y:2020:i:5:p:298-313

Access Statistics for this article

More articles in Acta Universitatis Danubius. OEconomica from Danubius University of Galati Contact information at EDIRC.
Bibliographic data for series maintained by Daniela Robu (danarobu@univ-danubius.ro).