RE-VISITING THE DETERMINANTS OF FDI INFLOW IN NIGERIA IN THE FACE OF GLOBAL OIL PRICE CRISES

Öz

This study mainly seeks to investigate the determinants of FDI inflow to Nigeria within the time frame from 1980 to 2018. The empirical analysis begins with stationarity test which revealed a mixed order of integration. The dynamic ARDL bound test was adapted for this study. The findings show that only economic openness and economic expansion are the main determinants of FDI inflow to Nigeria in the period under investigation, while industrialization and oil price exert negative impact on FDI inflow. A 1% change in GDP will cause 46% and 68% increase in FDI inflow though in an insignificant way. Similarly, a 1% changes in the economic openness will bring about a significant increase of 100% and 180% in FDI inflow both in the short and long run. The insignificant impact of economic expansion in attracting FDI inflow may be connected with the recent recession face in the country from 2015 till date. Thus, this study suggests two probable policy measures which includes government intervention in the working of the economic as supported by J.S Keynes through various spending policies directed to the productive sector of the economic to help raise demand and to revive the economy and position it on the path that will significantly influence potential foreign investors into the economy. Secondly, there is the need for diversification of the economy to help diversify FDI inflow to other sectors to avoid been caught up with the oil price shock in the future in an attempt to avoid future occurrence of a short fall in FDI inflow.

Anahtar Kelimeler

• Foreign Direct Investment
• FDI
• ARDL

Kaynakça

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