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

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

References