Published : 2022-12-30

The long-term response of FDI to insecurity and corruption: evidence from Nigeria

Abstract

Nigeria is undoubtedly faced with unstable inflows of FDI at the present time, and that country has continued to contend with rising insecurity and a relatively high level of corruption. We employ the DOLS and ARDL estimation techniques to explore the long-term response of FDI to both insecurity and corruption using quarterly data from Nigeria over the period 1996-2020. A long-term relationship was found amongst insecurity, FDI and corruption (alongside market size, the presence of natural resources, inflation, and exchange rate) based on the bounds testing approach to cointegration. The results point to a long-term significant and positive influence of lower corruption and higher security on FDI. Also, the size of the market, the presence of natural resources and depreciation of the domestic currency have a long-run significant positive influence on inbound FDI, while inflation has a long-term significant and decreasing influence on FDI. Thus, policymakers and government are advised to employ measures to reduce both insecurity and corruption to encourage the inflow of FDI over the long term.

Keywords:

FDI, insecurity, corruption, Nigeria



Details

References

Statistics

Authors

Download files

PDF

Citation rules

Abu, N., Staniewski, M. W., Gamal, A. A. M., Obi, B., & Karim, M. Z. A. (2022). The long-term response of FDI to insecurity and corruption: evidence from Nigeria. Forum Scientiae Oeconomia, 10(4), 9–27. https://doi.org/10.23762/FSO_VOL10_NO4_1

Altmetric indicators


Cited by / Share


Wydawnictwo Naukowe Akademii WSB
1c Cieplaka Street
41-300 Dąbrowa Górnicza, Poland
email: wydawnictwo@wsb.edu.pl
tel. +48 32 295 93 59
O platformie:
Copyright 2019 by Akademia WSB
OJS Support and Customization by LIBCOM
Platform & workfow by OJS/PKP
More information about the publishing system, Platform and Workflow by OJS/PKP.