AN EMPIRICAL ANALYSIS OF THE DETERMINANTS OF NIGERIA’S INWARD FOREIGN DIRECT INVESTMENT (FDI) FLOWS: A COINTEGRATION ANALYSIS
type: CreativeWork
description: Despite a myriad of studies related to inward foreign direct investment (FDI) determinants, studies on how such determinants may differ in developing versus developed countries have produced mixed results from which it is difficult to discern a conventional wisdom. Moreover, only relatively few studies have specifically investigated inward FDI determinants in Nigeria (Adelegan, 2009; Ekpo, 1997; Ajakaiye, 2010; Ajayi, 2006; Anyanwu, 1998; Olatunji, 2011; Ariyo, 2009; Okpara,et al., 2012), leaving a glaring gap on the key factors influencing inward FDI in Nigeria. Aiming to address this gap, the present PhD thesis intends to investigate the determinants of inward FDI in Nigeria. To address this primary aim, the specific research objectives are: (i) To critically review past literature, both theoretical and empirical, on the key determinant factors affecting Nigeria’s inward FDI; (ii) To collect relevant data, formulate an adequate model specification and choose the most suitable econometric technique to undertake the empirical analysis using a state-of-the-art cointegration technique (the ARLD bounds testing approach to cointegration); (iii)To interpret and discuss the results, identifying the main findings, and draw out key policy implications. The study uses annual data from 1970 to 2014 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration, a testing procedure for level relationshipsdeveloped by Pesaran and Shin (1999) and Pesaran et al. (2001). The major advantage of the ARDL approach to cointegration compared to other methods employed in previous studies is that it can be applied even if the regressors have different orders of integration, I(0) or I(1). This feature provides flexibility and also helps to avoid a potential “pre-test bias”, i.e., the specification of a long-run model on the basis of I(1) variables only (Pesaran et al., 2001). In addition, and being based on a single equation, the ARDL methodology performs b…
abstract: Despite a myriad of studies related to inward foreign direct investment (FDI) determinants, studies on how such determinants may differ in developing versus developed countries have produced mixed results from which it is difficult to discern a conventional wisdom. Moreover, only relatively few studies have specifically investigated inward FDI determinants in Nigeria (Adelegan, 2009; Ekpo, 1997; Ajakaiye, 2010; Ajayi, 2006; Anyanwu, 1998; Olatunji, 2011; Ariyo, 2009; Okpara,et al., 2012), leaving a glaring gap on the key factors influencing inward FDI in Nigeria. Aiming to address this gap, the present PhD thesis intends to investigate the determinants of inward FDI in Nigeria. To address this primary aim, the specific research objectives are: (i) To critically review past literature, both theoretical and empirical, on the key determinant factors affecting Nigeria’s inward FDI; (ii) To collect relevant data, formulate an adequate model specification and choose the most suitable econometric technique to undertake the empirical analysis using a state-of-the-art cointegration technique (the ARLD bounds testing approach to cointegration); (iii)To interpret and discuss the results, identifying the main findings, and draw out key policy implications. The study uses annual data from 1970 to 2014 and employs the Autoregressive Distributed Lag (ARDL) bounds testing approach to cointegration, a testing procedure for level relationshipsdeveloped by Pesaran and Shin (1999) and Pesaran et al. (2001). The major advantage of the ARDL approach to cointegration compared to other methods employed in previous studies is that it can be applied even if the regressors have different orders of integration, I(0) or I(1). This feature provides flexibility and also helps to avoid a potential “pre-test bias”, i.e., the specification of a long-run model on the basis of I(1) variables only (Pesaran et al., 2001). In addition, and being based on a single equation, the ARDL methodology performs b…
author: Akinwalere, Susan Nwadinachi
language: en
date published: 2017
date modified: 2026-07-24T03:43:00Z
provider: Oxford Brookes University
publisher: Networked Digital Library of Theses and Dissertations
type: WebPage
source organization: Oxford Brookes University

PropertyValue
property ID: DOI
value: 10.24384/xa34-2869