Nigeria’s Investment Environment: Issues of Economic Growth and Development
Ikechukwu A. Acha,
Emmanuel IKPE Michael and
Joseph M. Essien
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Ikechukwu A. Acha: University of Uyo, Nigeria
Emmanuel IKPE Michael: University of Uyo, Nigeria
Joseph M. Essien: Ken Saro Wiwa Polytechnic, Nigeria
Expert Journal of Finance, 2017, vol. 5, 1-11
In this study, the researchers examine the Nigerian investment environment and assess its contributions or otherwise to the economic growth and development of the country. The study adopted ex post facto and secondary data research designs, using time series data obtained from various editions of CBN Statistical Bulletins. Some environment-specific factors such as the growth rate of RGDP (as dependent variable) and Exchange Rate (ER), Inflation Rate (IFR), Prime Lending Rate (PLR), and Total Government Expenditure (TGE), as independent variables. Augmented Dickey Fuller (ADF) test was carried out to test for stationarity of the variables Johansen’s cointegration test was also conducted to ascertain the nature of relationship among the variables and on the whole, Ordinary Least Square regression technique was adopted in the analysis of the variables and model used in the study. The ADF results obtained showed that RGDPgr and PLR were stationary at level while ER, IFR, and TGE were stationary at first difference. Also, Trace test indicates 2 cointegrating equations at 5 percent level of significance. The OLS result showed positive relationship between ER, PLR and the RGDPgr but a negative relationship between IFR, TGE and RGDPgr. They recommend that Government through appropriate agencies should reduce prime lending rate to encourage borrowing for investment or other productive activities and that the unexpected negative relationship between government expenditure and economic growth which may be as a result of government spending in unproductive ventures, should be weighed and appropriately channelled.
Keywords: Prime Lending Rate; Government Expenditure; Real Gross Domestic Product; Inflation; Savings; Capital; Wealth; Exchange Rate (search for similar items in EconPapers)
JEL-codes: E22 C58 F63 O16 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:exp:finnce:v:5:y:2017:i::p:1-11
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