Factors Determining FDI to Nigeria: An Empirical Investigation

Dinda, Soumyananda

Factors Determining FDI to Nigeria: An Empirical Investigation

MPRA Paper from University Library of Munich, Germany

Abstract: This study empirically investigates the determinants of foreign direct investment (FDI) to Nigeria during 1970-2006. This study suggests that the endowment of natural resources, trade intensity, macroeconomic risk factors like inflation and exchange rates are significant determinants of FDI flow to Nigeria. The findings also suggest that in long run market size is not the significant factor for attracting FDI to Nigeria, it contradicts the existing literature. Our results indicate that FDI flow to Nigeria is resource-seeking FDI. Results also suggest that trading partner like the UK in North-South (N - S) and China in South-South (S - S) trade relation have strong influence on Nigeria’s natural resource outflow.

Keywords: FDI; Natural resource export; exchange rate; openness; inflation rate; VECM; North-South and South-South trade (search for similar items in EconPapers)
JEL-codes: C13 C22 F18 O13 O55 Q32 (search for similar items in EconPapers)
Date: 2008-07, Revised 2010-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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https://mpra.ub.uni-muenchen.de/28097/1/MPRA_paper_28097.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/40170/1/MPRA_paper_40170.pdf revised version (application/pdf)

Related works:
Working Paper: Factors determining FDI in Nigeria: an empirical investigation (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:28097

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