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

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 adv...

Full description

Saved in:
Bibliographic Details
Published in:Acta Universitatis Danubius. Œconomica 2020, Vol.16 (6), p.298-313
Main Authors: Oluwatobi, Fagbola O, Babatunde, Oke O, Adegbite, Esther Oluwafunmilayo
Format: Article
Language:eng ; fre
Subjects:
Business Economy / Management
Capital
Capital movement
Data analysis
Economic development
Economic integration
Emerging markets
Energy consumption
Error correction & detection
Expenditures
Foreign exchange rates
Foreign investment
GDP
Government spending
Gross Domestic Product
Host country
Inference
Interest rates
International economics
Macroeconomics
Policy making
Politics
Private investment
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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 country specific 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.
ISSN:2065-0175
2067-340X