EconPapers    
Economics at your fingertips  
 

The Role of Foreign Direct Investment in Stock Market Development in Nigeria: A Test of Complementarity

Gbenga Festus Babarinde

The Review of Finance and Banking, 2020, vol. 12, issue 2, 175-187

Abstract: This paper examines the role of foreign direct investment (FDI) in stock market development in Nigeria for the period 1981-2018 via Dynamic Ordinary Least Squares(DOLS) and pairwise Granger causality techniques. Empirical findings indicate that FDI plays a positive significant role in the development stock market in Nigeria. Also, a unidirectional causality flows from FDI to stock market development. This study concludes that FDI constitutes a catalyst to stock market development in Nigeria, which implies the complementary role of FDI in stock market. Therefore, Nigerian government should ensure investors-friendly macroeconomic framework and implement policies to encourage inflows of FDI in Nigeria.

Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://rfb.ase.ro/articole/Articol5_2_2020.pdf Full text (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:rfb:journl:v:12:y:2020:i:2:p:175-187

Access Statistics for this article

The Review of Finance and Banking is currently edited by Victor Dragota; Bogdan Negrea

More articles in The Review of Finance and Banking from Academia de Studii Economice din Bucuresti, Romania / Facultatea de Finante, Asigurari, Banci si Burse de Valori / Catedra de Finante Strada Mihai Eminescu nr.13-15, sector 1, Bucuresti, Romania. Contact information at EDIRC.
Bibliographic data for series maintained by Tatu Lucian ().

 
Page updated 2021-01-23
Handle: RePEc:rfb:journl:v:12:y:2020:i:2:p:175-187