Impact of Foreign Direct Investment (Fdi) On the Stock Market Performances in Nigeria (1985-2014)

Cordelia Onyinyechi Omodero and M.C. Ekwe

Applied Finance and Accounting, 2017, vol. 3, issue 1, 36-48

Abstract: The study examined the impact of Foreign Direct Investment (FDI) on the stock market performances in Nigeria, from 1985 ¨C 2014. The secondary data used were collected from IMF, International Financial Statistics (2015), CBN Statistical Books (2015). Multiple regression of least square estimation was the tool used to analyze the data in this study. In the model, the FDI was regressed on RGDP, Consumer Price Index, Real effective exchange rate, Money supply (M2), Share price index, Treasury bill, Nigerian stock exchange transactions. The study revealed that FDI has an insignificant and negative impact on the economy and the macroeconomic variables that determine the performances of the Nigerian stock market. The paper therefore recommends policies that would encourage foreign firms operating in the oil and gas including the telecommunication and agricultural sectors to be listed since it would go a long way in attracting more FDI, leading to improvement in the stock market performances.

Keywords: Foreign Direct Investment (FDI); Stock Market performance; Macroeconomic variables; real effective exchange rate; Money Supply; Nigeria. (search for similar items in EconPapers)
Date: 2017
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Citations: View citations in EconPapers (3)

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