IIARD International Institute of Academic Research and Development

Journal of Accounting and Financial Management (JAFM )

E-ISSN 2504-8856
P-ISSN 2695-2211
VOL. 9 NO. 3 2023
DOI: https://doi.org/10.56201/jafm.v9.no3.2023.pg150.160

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Financial Development: An Empirical Study of Foreign Direct Investment in Nigeria (1999-2021)

Okeke, Prince Chinedu, PhD.

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Abstract

This study determined the effect of financial development on foreign direct investment in Nigeria. The study adopted Ex Post Facto research design. Data were obtained from Central Bank of Nigerian Statistical Bulletin from 1999 to 2021. The hypotheses were tested with regression analysis, and the result shows that credit to private sector and market capitalization were positively affected by foreign direct investment, though the effects were not statistically significant. Based on the findings, government should create enabling environment that will encourage foreign direct investment in the industrial production sector which will help to increase the nation gross domestic product.

keywords:

Credit to private sector, Market capitalization, Foreign direct investment

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References:

Ali, I. (2014). Impact of foreign direct investment on volatility of stock market: An evidence
from Pakistani market. IOSR Journal of Business and Management, 16(1,7), 77-80.

Arcabic, V., Globan, T., & Raguz, I. (2013). The relationship between the stock market and
foreign direct investment in Croatia: Evidence from VAR and cointegration analysis.
Financial Theory and Practice, 37(1), 109-126.

Arikpo, O. F., & Ogar, A. (2018). Empirical examination of foreign direct investment and
stock market performance in Nigeria. International Journal of Economics and Financial
Management, 3(2), 68-92.

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