ABSTRACT : This study examined the impact of FDI on financial deepening in Nigeria from 1980 to 2022.
The research questions address the trend of FDI and financial deepening in Nigeria and the relationship between
the two variables. The study will used econometrics analysis basically cointegration and error correction model
to estimate the relationship between FDI and financial deepening . The findings of this researchrevealed that
foreign direct investment exert significant impact on financial deepening in Nigeria along the long run and short
run horizon. The findings have implications for policymakers, the Nigerian government, investors, and
businesses. Understanding the impact of FDI on financial deepening helpssuggests appropriate policy measures
and strategies to enhance Nigeria's financial sector and spur economic growth. Additionally, the study
contributes to the existing literature on FDI and financial deepening, providing valuable insights for future
research in this area.
KEY WORDS: Foreign Direct Investment; Financial Deepening; Relationship
Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth...ijtsrd
The article aimed to investigate the relationship between inflation rate, foreign direct investment, interest rate, and economic growth of ten 10 emerging Sub Sahara African countries for the period 1998 to 2018. The random effects GLS regression estimator was employed to examine the equilibrium relationship between the variables. From the results, foreign direct investment had a significantly positive influence on GDP, while the inflation rate and interest rate trivially positively predicted GDP. Based on these findings, the study recommended that the government of emerging nations should put prudent measures to improve inflation, interest rate, and foreign direct investment within the economy for sound wellbeing. Ofori Charles | Shuibin Gu | Takyi Kwabena Nsiah | Eric Dwomoh "Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth in Sub Sahara Africa: Evidence from Emerging Nations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31105.pdf Paper Url: https://www.ijtsrd.com/economics/international-economics/31105/inflation-rate-foreign-direct-investment-interest-rate-and-economic-growth-in-sub-sahara-africa-evidence-from-emerging-nations/ofori-charles
Analysis of foreign investment and identified macroeconomic measures in nigeriaAlexander Decker
This document analyzes the relationship between foreign investment and macroeconomic variables in Nigeria from 1980-2010. It finds that GDP, exchange rates, and money supply have a direct positive impact on foreign investment, while interest rates and inflation have a negative impact. Interest rates and inflation are also found to "Granger cause" foreign investment, indicating they are influential factors. The study recommends that Nigeria implement excellent macroeconomic policies and infrastructure development to enhance investment and reduce poverty.
Specific Analysis of FDI and Economic Growth in Nigeria and Ghanainventionjournals
This study analyses the relationship between FDI and economic growth in Nigeria and Ghana and how these relationship differ between both countries. This was explored using annual time series data obtained from the World Bank WDI for the period 1970-2015. This paper adopted the Absorptive Capacity theoretical framework and using the Seemingly Unrelated Regression (SUR) technique, regressed economic growth (proxied by the growth rate of per capita real GDP) on FDI, FDI transmission channels, and five other control variables. After conducting all the necessary and sufficient statistical, economic and econometric tests, the results show that: (i) generally, FDI exerts some positive impact on economic growth in both countries; (ii) the absorptive capacity theory does not hold in both countries, (iii) there is a bi-directional causality running from FDI to economic growth and from economic growth to FDI in both countries; (iv) the relationship between economic growth and FDI does not differ between both countries.
Effect of FDI Inflows on Real Sector Economy of Nigeriaijtsrd
The study have examined the effect of sectorial FDI to economic growth of Nigeria within 34 year period spanning 1987 to 2020. FDI was disaggregated into four variables being agriculture, construction, manufacturing, and oil and gas as the independent variable. Economic growth was the dependent variable. The data were obtained from CBN statistical bulletin and Annual reports. The repression analysed using the ARDL technique. The results showed that FDI to various sector of the economy has significant long run effect on economic growth of Nigeria. Furthermore, The short run dynamic results revealed that 1 FDI to agriculture has interjecting effect with positive effect in the first lag 1 and successive negative effects in lags 2 and 4 2 FDI to construction have a significant positive effect on economic growth 3 FDI to manufacturing sector has negative effect on economic growth and 4 FDI to oil and gas sector has positive effect on economic growth. The study posits that FDI inflows is a veritable driver to economic growth to developing economies like Nigeria. Among the recommendations of this study is that the government should encourage local investment into the agriculture and manufacturing to cushion the adverse impact of FDI to Nigeria growth. Ositadimma Victor Okpalla | Sylvia Chikodi Anaele | Ifeanyi Jude Ekwunife "Effect of FDI Inflows on Real Sector Economy of Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51910.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51910/effect-of-fdi-inflows-on-real-sector-economy-of-nigeria/ositadimma-victor-okpalla
Foreign Investment and Its Effect on the Economic Growth in Nigeria: A Triang...iosrjce
Evidence abound about the registered increase in foreign investment inflows in recent years. While
proponents emphasize that these inflows could engender economic growth, critics express concern that there
could be destabilizing effect on the economy if not well managed. This study therefore, attempts to examine the
effect of foreign investments (disaggregated into foreign direct investment and foreign portfolio investment)
inflows on economic growth in Nigeria with a view to ascertaining the better contributor, using time series data
from 1987-2012. The OLS and the Granger causality procedures were employed in analyzing the data. The
result displays that both foreign direct investment and foreign portfolio investment have positive and significant
effect on economic growth though the partial correlation coefficients show that foreign portfolio investment is
the better contributor. Based on the result, government should pursue policies that encourage both foreign
direct investment and especially foreign portfolio investment.
Tax Incentives and Foreign Direct Investment in Nigeriaiosrjce
Given the significance of Foreign Direct Investment (FDI) to economic growth and the use of tax
incentives as a strategy among government of various countries to attract FDI, this study examines the influence
of tax incentives in the decision of an investor to locate FDI in Nigeria. Data were drawn from annual statistical
bulletin of the Central Bank of Nigeria and the World Bank World Development Indicators Database. The work
employs a model of multiple regressions using static Error Correction Modelling (ECM) to determine the time
series properties of tax incentives captured by annual tax revenue as a percentage of Gross Domestic Product
(GDP)and FDI. The result showed that FDI response to tax incentives is negatively significant, that is, increase
in tax incentives does not bring about a corresponding increase in FDI. Based on the findings, the paper
recommends, amongst others, that dependence on tax incentives should be reduced and more attention be put on
other incentives strategies such as stable economic reforms and stable political climate.
Economic Development Implications of the International Financial Institutions...AJHSSR Journal
ABSTRACT : Employment generation has remained central to the policy goal of economic development in
Nigeria. In view of this, an empirical investigation into the link between international financial institutions loans
and employment rate was carried out in this study. Specifically, the effects of loans from the International
Finance Corporation (IFC), International Development Association (IDA), Paris Club and African Development
Bank on employment rate were examined. The data for the variables were obtained from the United Nations
Development Programme Human Development Report, National Bureau of Statistics, World Development
Indicators and International Debt Statistics. The empirical investigation followed an ex post facto research
design with the application of descriptive statistics, unit root and cointegration tests as well as error correction
model and Granger causality tests as the data analysis techniques. The unit root test results revealed that all the
variables are stationary at first difference, which justifies the test for cointegration using the Johansen method. It
was found from the cointegration test results that long run relationship exists among the variables in the model.
The parsimonious ECM revealed that IDA and African Development Bank loans have a significant positive
effect on employment rate. This highlights the substantial role played these funding sources in generating
employment in Nigeria. On the contrary, International Finance Corporation and Paris Club do not have any
significant effect on employment rate. Owing to the findings, it is recommended that loans available to Nigeria
from the international development association should be channeled to investments in critical infrastructure and
agriculture development to generate employment and achieve economic development.
KEYWORDS: Employment generation, institutions loans, International Finance Corporation, IDA, Paris Club
and African Development Bank
Determinants of Foreign Direct Investment in Nigeriaijtsrd
This document examines the determinants of foreign direct investment (FDI) in Nigeria. It provides context on FDI and its importance for economic growth. FDI inflows to Nigeria have experienced volatility over time. The study aims to determine what factors influence FDI in Nigeria using econometric analysis. Specifically, it will analyze the impact of trade openness, market size, infrastructure, human capital, labor force, natural resources, exchange rate, and inflation rate on FDI inflows. The document reviews several previous studies that have examined factors influencing FDI in Nigeria and other countries. It finds that market size, trade openness, exchange rates, and inflation are often statistically significant determinants of FDI.
Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth...ijtsrd
The article aimed to investigate the relationship between inflation rate, foreign direct investment, interest rate, and economic growth of ten 10 emerging Sub Sahara African countries for the period 1998 to 2018. The random effects GLS regression estimator was employed to examine the equilibrium relationship between the variables. From the results, foreign direct investment had a significantly positive influence on GDP, while the inflation rate and interest rate trivially positively predicted GDP. Based on these findings, the study recommended that the government of emerging nations should put prudent measures to improve inflation, interest rate, and foreign direct investment within the economy for sound wellbeing. Ofori Charles | Shuibin Gu | Takyi Kwabena Nsiah | Eric Dwomoh "Inflation Rate, Foreign Direct Investment, Interest Rate, and Economic Growth in Sub Sahara Africa: Evidence from Emerging Nations" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-4 | Issue-6 , October 2020, URL: https://www.ijtsrd.com/papers/ijtsrd31105.pdf Paper Url: https://www.ijtsrd.com/economics/international-economics/31105/inflation-rate-foreign-direct-investment-interest-rate-and-economic-growth-in-sub-sahara-africa-evidence-from-emerging-nations/ofori-charles
Analysis of foreign investment and identified macroeconomic measures in nigeriaAlexander Decker
This document analyzes the relationship between foreign investment and macroeconomic variables in Nigeria from 1980-2010. It finds that GDP, exchange rates, and money supply have a direct positive impact on foreign investment, while interest rates and inflation have a negative impact. Interest rates and inflation are also found to "Granger cause" foreign investment, indicating they are influential factors. The study recommends that Nigeria implement excellent macroeconomic policies and infrastructure development to enhance investment and reduce poverty.
Specific Analysis of FDI and Economic Growth in Nigeria and Ghanainventionjournals
This study analyses the relationship between FDI and economic growth in Nigeria and Ghana and how these relationship differ between both countries. This was explored using annual time series data obtained from the World Bank WDI for the period 1970-2015. This paper adopted the Absorptive Capacity theoretical framework and using the Seemingly Unrelated Regression (SUR) technique, regressed economic growth (proxied by the growth rate of per capita real GDP) on FDI, FDI transmission channels, and five other control variables. After conducting all the necessary and sufficient statistical, economic and econometric tests, the results show that: (i) generally, FDI exerts some positive impact on economic growth in both countries; (ii) the absorptive capacity theory does not hold in both countries, (iii) there is a bi-directional causality running from FDI to economic growth and from economic growth to FDI in both countries; (iv) the relationship between economic growth and FDI does not differ between both countries.
Effect of FDI Inflows on Real Sector Economy of Nigeriaijtsrd
The study have examined the effect of sectorial FDI to economic growth of Nigeria within 34 year period spanning 1987 to 2020. FDI was disaggregated into four variables being agriculture, construction, manufacturing, and oil and gas as the independent variable. Economic growth was the dependent variable. The data were obtained from CBN statistical bulletin and Annual reports. The repression analysed using the ARDL technique. The results showed that FDI to various sector of the economy has significant long run effect on economic growth of Nigeria. Furthermore, The short run dynamic results revealed that 1 FDI to agriculture has interjecting effect with positive effect in the first lag 1 and successive negative effects in lags 2 and 4 2 FDI to construction have a significant positive effect on economic growth 3 FDI to manufacturing sector has negative effect on economic growth and 4 FDI to oil and gas sector has positive effect on economic growth. The study posits that FDI inflows is a veritable driver to economic growth to developing economies like Nigeria. Among the recommendations of this study is that the government should encourage local investment into the agriculture and manufacturing to cushion the adverse impact of FDI to Nigeria growth. Ositadimma Victor Okpalla | Sylvia Chikodi Anaele | Ifeanyi Jude Ekwunife "Effect of FDI Inflows on Real Sector Economy of Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-6 , October 2022, URL: https://www.ijtsrd.com/papers/ijtsrd51910.pdf Paper URL: https://www.ijtsrd.com/management/accounting-and-finance/51910/effect-of-fdi-inflows-on-real-sector-economy-of-nigeria/ositadimma-victor-okpalla
Foreign Investment and Its Effect on the Economic Growth in Nigeria: A Triang...iosrjce
Evidence abound about the registered increase in foreign investment inflows in recent years. While
proponents emphasize that these inflows could engender economic growth, critics express concern that there
could be destabilizing effect on the economy if not well managed. This study therefore, attempts to examine the
effect of foreign investments (disaggregated into foreign direct investment and foreign portfolio investment)
inflows on economic growth in Nigeria with a view to ascertaining the better contributor, using time series data
from 1987-2012. The OLS and the Granger causality procedures were employed in analyzing the data. The
result displays that both foreign direct investment and foreign portfolio investment have positive and significant
effect on economic growth though the partial correlation coefficients show that foreign portfolio investment is
the better contributor. Based on the result, government should pursue policies that encourage both foreign
direct investment and especially foreign portfolio investment.
Tax Incentives and Foreign Direct Investment in Nigeriaiosrjce
Given the significance of Foreign Direct Investment (FDI) to economic growth and the use of tax
incentives as a strategy among government of various countries to attract FDI, this study examines the influence
of tax incentives in the decision of an investor to locate FDI in Nigeria. Data were drawn from annual statistical
bulletin of the Central Bank of Nigeria and the World Bank World Development Indicators Database. The work
employs a model of multiple regressions using static Error Correction Modelling (ECM) to determine the time
series properties of tax incentives captured by annual tax revenue as a percentage of Gross Domestic Product
(GDP)and FDI. The result showed that FDI response to tax incentives is negatively significant, that is, increase
in tax incentives does not bring about a corresponding increase in FDI. Based on the findings, the paper
recommends, amongst others, that dependence on tax incentives should be reduced and more attention be put on
other incentives strategies such as stable economic reforms and stable political climate.
Economic Development Implications of the International Financial Institutions...AJHSSR Journal
ABSTRACT : Employment generation has remained central to the policy goal of economic development in
Nigeria. In view of this, an empirical investigation into the link between international financial institutions loans
and employment rate was carried out in this study. Specifically, the effects of loans from the International
Finance Corporation (IFC), International Development Association (IDA), Paris Club and African Development
Bank on employment rate were examined. The data for the variables were obtained from the United Nations
Development Programme Human Development Report, National Bureau of Statistics, World Development
Indicators and International Debt Statistics. The empirical investigation followed an ex post facto research
design with the application of descriptive statistics, unit root and cointegration tests as well as error correction
model and Granger causality tests as the data analysis techniques. The unit root test results revealed that all the
variables are stationary at first difference, which justifies the test for cointegration using the Johansen method. It
was found from the cointegration test results that long run relationship exists among the variables in the model.
The parsimonious ECM revealed that IDA and African Development Bank loans have a significant positive
effect on employment rate. This highlights the substantial role played these funding sources in generating
employment in Nigeria. On the contrary, International Finance Corporation and Paris Club do not have any
significant effect on employment rate. Owing to the findings, it is recommended that loans available to Nigeria
from the international development association should be channeled to investments in critical infrastructure and
agriculture development to generate employment and achieve economic development.
KEYWORDS: Employment generation, institutions loans, International Finance Corporation, IDA, Paris Club
and African Development Bank
Determinants of Foreign Direct Investment in Nigeriaijtsrd
This document examines the determinants of foreign direct investment (FDI) in Nigeria. It provides context on FDI and its importance for economic growth. FDI inflows to Nigeria have experienced volatility over time. The study aims to determine what factors influence FDI in Nigeria using econometric analysis. Specifically, it will analyze the impact of trade openness, market size, infrastructure, human capital, labor force, natural resources, exchange rate, and inflation rate on FDI inflows. The document reviews several previous studies that have examined factors influencing FDI in Nigeria and other countries. It finds that market size, trade openness, exchange rates, and inflation are often statistically significant determinants of FDI.
Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This document summarizes a research journal article that investigates the long-run relationship between private investment and monetary policy in Nigeria from 1980-2009. It uses vector auto-regression techniques to test the relationship between private investment, GDP, money supply, and other factors. The results showed that money supply has a negative short-run impact on private investment, while GDP and other factors have a positive impact. In the long-run, all the variables became statistically significant. This implies that monetary policy in Nigeria has positively affected the growth of private investment and the economy over the long term. The document reviews several other studies on the relationship between financial development, private investment, and economic growth.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria 1...ijtsrd
Nigeria is a developing economy with active participation of the federal government in various economic sectors not only to promote economic growth and development but also to instill fiscal and economic discipline in the economy. Government participation in the economy means greater funding of economic activities and this is expected to impact on economic indicators. This study analyses the effect of government expenditure on inflation rate in Nigeria within a period of 39 years spanning 1981 2019 . The study specifically seek to ascertain, determine, explore and assess the extent to which government expenditures on key sectors of agriculture, education, health and telecommunications respectively affect inflation rate in Nigeria. In line with the specific objectives of this study, four research questions are raised and four hypotheses duly formulated. Data used for this study were collected from the Central Bank of Nigeria CBN Statistical Bulletin. Government Expenditure on Agriculture GOA , Government Expenditure on Education GOE , Government Expenditure on Health GOH and Government Expenditure on Telecommunication GOT are the independent variables while inflation rate INF is the dependent variable. Descriptive statistics, diagnostic test employing the Augmented Dickey Fuller and a multivariate regression based on Johanson Cointegration and Error Correction Model ECM are used to analyze the data. Our findings indicate that government expenditures on education and agriculture have positive but insignificant effect on inflation rate and on the other hand, government expenditure on health and government expenditure on telecommunications have positive and significant effect on inflation rate. Based on our findings, the study recommends that government should increase its allocation to the health and education sectors to trigger increased skills and healthcare of economic operators for enhanced human capital development and economic productivity. Government should also provide adequate infrastructures to facilitate economic growth and reduce high inflation rate. Mbanefo, Patrick Amaechi | Atueyi, Chidi Leonard "Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria (1981-2019)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2 , February 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49237.pdf Paper URL: https://www.ijtsrd.com/management/management-development/49237/analyzing-the-effect-of-government-expenditure-on-inflation-rate-in-nigeria-19812019/mbanefo-patrick-amaechi
Foreign Direct Investment and Human Capital Development in a Developing Afric...ijtsrd
This document summarizes a research paper that examines the effect of foreign direct investment (FDI) on human capital development in Nigeria from 1987 to 2018. It begins with background on FDI and human capital development. It then reviews literature on the relationship between FDI and economic growth. The study uses data from the Central Bank of Nigeria and World Bank to analyze the long-run and short-run effects of FDI and other factors like exchange rates on human capital development in Nigeria, finding that FDI has a positive short-run effect but no long-run effect. It recommends that Nigeria reduce reliance on FDI and focus it on short-term plans only.
Impact of Foreign Direct Investments on Domestic Investments in Nigeriaijtsrd
This study examines the impact of foreign direct investments on domestic investments in Nigeria. Specifically, the study seeks to ascertain the effect of foreign direct investment, per capita income, consumption expenditure, savings and debt burden on domestic investments in Nigeria using an inferential statistic like the regression analysis after determining stationarity of the variables using the ADF Statistic, as well as the cointegration of variables using the Johansen approach. Findings revealed that foreign direct investment, per capita income, consumption expenditure, savings, interest rate and debt burden are statistically significant in explaining domestic investment in Nigeria. The F test conducted in the study shows that the model has a goodness of fit and is statistically different from zero. In other words, there is a significant impact between the dependent and independent variables in the model. The study therefore recommends that There is need for government to formulate investment policies that will be favourable to local investors in order to complement the inflow of investment from abroad. Government should provide adequate infrastructure and policy framework that will be conducive for doing business in Nigeria, so as to attract the inflow of FDI. Policies that would improve per capita income of Nigeria should be pursued as this will stabilize and accelerate the rate of investment in Nigeria. Anionwu, Carol "Impact of Foreign Direct Investments on Domestic Investments in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26725.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/26725/impact-of-foreign-direct-investments-on-domestic-investments-in-nigeria/anionwu-carol
Modelling the Long Run Determinants of Foreign Portfolio in NigeriaMoses Oduh
1) This study examines the long-run determinants of foreign portfolio investment in Nigeria from 1981-2010 using time series analysis.
2) It finds that foreign portfolio investment has a positive long-run relationship with market capitalization and trade openness in Nigeria.
3) The study aims to help policymakers pursue policies that can attract more foreign portfolio investment in the long run, such as efforts to improve and sanitize the Nigerian capital market.
This study examined the effect interest rate on economic growth in Nigeria. Augmented Dickey – Fuller (ADF), Bound Test and Autoregressive Distributed Lag (ARDL) were employed to examine the effect of impact of interest rate on economic growth in Nigeria. The unit root test showed gross domestic product was 1(0) while interest rate, investment and gross capital formation were 1(1). The result of the Bound Test indicated long run relationship among the macroeconomic variables employed in the study. The result of the ARDL indicated that interest rate had negative effect on economic growth both in short run and long run. However, in the long run investment and gross capital formation were established to have positive effect on economic growth with gross capital formation being insignificant. It was concluded that interest rate has a macroeconomic tool is not effective in stimulating economic growth in Nigeria. It was recommended that the level of interest rate should be adequately controlled for the purpose of stimulating economic growth without inflationary pressure. Finally, robust macroeconomic policies aimed at ensuring economic stability should be formulated in order to increase capital formation and attract investment in order to promote economic growth.
The document provides background information on foreign direct investment (FDI) and discusses the importance of FDI to developing economies like Nigeria. It notes that Nigeria suffers from capital scarcity due to low domestic savings. While FDI can help boost capital levels and economic growth, insecurity poses challenges to Nigeria's investment climate and has led to declining FDI. The study aims to examine the impact of insecurity on FDI in Nigeria, particularly in the manufacturing and communication sectors, in order to improve economic growth and development. It outlines the statement of the problem, research questions, objectives, hypotheses and significance of the study.
11.co integration analysis of foreign direct investment inflow and developmen...Alexander Decker
This document analyzes the relationship between foreign direct investment (FDI) inflows and economic development in Nigeria from 1979-2007. It uses vector autoregression models and cointegration tests to analyze the data. The results show:
1) There is a long-run relationship between FDI inflows from Ghana and South Africa and Nigeria's GDP, implying FDI contributes to Nigeria's economic development.
2) Granger causality tests reveal Nigeria's GDP causes FDI inflows from South Africa, and FDI from both South Africa and Ghana Granger causes Nigeria's GDP.
3) In the short run, past values of variables like FDI affect current values of Nigeria's GDP, indicating F
7.[56 66]co-integration analysis of foreign direct investment inflow and deve...Alexander Decker
This document analyzes the relationship between foreign direct investment (FDI) inflows and economic development in Nigeria from 1979-2007. It uses vector autoregression models and cointegration tests to examine the impact of FDI from Ghana and South Africa on Nigeria's GDP. The results show that GDP causes FDI from South Africa and that FDI from both South Africa and Ghana Granger causes GDP, implying a long-run relationship between FDI inflows and development in Nigeria.
Developmental Effect of the Rising Debt Level in Nigeriaijtsrd
Background Nigerian economy is bedeviled by dwindling economy, low per capita income, poor infrastructural development, high unemployment rates, inadequate basic amenities, falling growth rates of GDP and recently, rated the poverty headquarters of the world which calls for empirical investigation as a way forward to resuscitate the economy.Aim The study investigated the effect of debt level on the economic development of Nigeria from 1999 to 2021. Materials and Methods Two research questions were developed to guide the study. Also, two hypotheses were formulated for the study. Ex post facto research design was adopted. The study used time series data to analyse public debt level trends in Nigeria compared to GDP growth rate over twenty three 23 years, spanning from the year 1999 to 2021. Ordinary least square regression, unit root test, and Johansen co integration test were used to analyse the data collected from Central Bank of Nigeria Statistical Bulletin. Results The results of the study showed that domestic debt level significantly and positively affects the gross domestic product performance in Nigeria. Also, the study found that external debt level significantly and negatively influences the gross domestic product of Nigeria. Conclusion The study concludes that debt level domestic and external have significant effect on Nigerian gross domestic product.Recommendation It was recommended that the government should resort to domestic debts up to sustainable debt levels that do not crowd out development and social programmes to prevent issues with debt overhang, government borrowing from international markets should be utilized effectively and concessionary loans rather than commercial loans should be sought after. Tochukwu Akaegbobi | Okeke Onyekachi, N | Onyeogubalu Ogochukwu, N "Developmental Effect of the Rising Debt Level in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd57480.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/57480/developmental-effect-of-the-rising-debt-level-in-nigeria/tochukwu-akaegbobi
1. The document analyzes the relationship between domestic savings, investment, and economic growth in Nigeria from 1970-2015.
2. It finds that domestic savings, investment, and GDP growth were low over the period studied, with fluctuating trends.
3. The study employs various econometric techniques including unit root tests, cointegration tests, vector error correction models, and Granger causality tests.
4. The results show domestic investment has a positive and significant long-run impact on economic growth in Nigeria. There is also bidirectional short-run causality between domestic investment and economic growth.
The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.
STUDY ON THE DEVELOPMENT STRATEGY OF HUZHOU TOURISMAJHSSR Journal
ABSTRACT: Huzhou has rich tourism resources, as early as a considerable development since the reform and
opening up, especially in recent years, Huzhou tourism has ushered in a new period of development
opportunities. At present, Huzhou tourism has become one of the most characteristic tourist cities on the East
China tourism line. With the development of Huzhou City, the tourism industry has been further improved, and
the tourism degree of the whole city has further increased the transformation and upgrading of the tourism
industry. However, the development of tourism in Huzhou City still lags far behind the tourism development of
major cities in East China. This round of research mainly analyzes the current development of tourism in
Huzhou City, on the basis of analyzing the specific situation, pointed out that the current development of
Huzhou tourism problems, and then analyzes these problems one by one, and put forward some specific
solutions, so as to promote the further rapid development of tourism in Huzhou City.
KEYWORDS:Huzhou; Travel; Development
Enhancing Losari Beach Exploration: Augmented Reality for Immersive Visualiza...AJHSSR Journal
ABSTRACT: South Sulawesi, commonly known as Makassar, boasts rich cultural heritage and customs,
making it a prominent destination for tourism. Among its attractions, Losari beach stands out as a focal point for
visitors seeking to explore the city's natural beauty and cultural offerings. In this context, leveraging modern
technology such as augmented reality presents an innovative approach to showcasing Losari beach to potential
tourists. This research endeavors to introduce tourism assets in a more visually captivating manner through the
use of augmented reality. Utilizing software tools like Unity and Adobe Illustrator, the study focuses on creating
an immersive experience where tourists can interact with virtual representations of Losari beach. By simply
pointing their mobile phone cameras at designated markers or using barcode scanners, tourists can access
augmented reality features embedded within the application. The findings of this research aim to provide
valuable information, particularly for foreign tourists, about Losari beach, positioning it as a compelling
destination within South Sulawesi's diverse array of tourist attractions. Through this technological innovation,
the study seeks to enhance the visibility and appeal of Makassar city's tourism offerings on a global scale.
KEYWORDS: Visualizing, Losari Beach, Augmented Reality
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Foreign Direct Investment (FDI) has been seen as an important factor influencing economic growth directly and indirectly in both developed and developing countries. This study assesses the impact of FDI on growth in Ghana since the return to constitutional rule in 1993. The study uses time series data from 1993 to 2016. Using the Autoregressive Distributed Lagged model (ARDL), the study finds a positive impact of FDI on growth both in the short-run and long-run. However, there is a lag period of two. The study equally finds that Gross Saving has a positive impact on growth. On the other hand inflation has a negative effect on growth both in the short and long run. The study also discovered that FDI granger causes growth but GDP does not granger cause FDI. Post-election years with incidence of political uncertainty slow down FDI inflow into Ghana. The study recommends the adoption of stringent fiscal and monetary policies to keep inflation low. It also recommends maintaining and improving the liberal market environment to attract investors, policies to encourage saving, and improving on political transitions to avoid uncertainties for investors.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This document summarizes a research journal article that investigates the long-run relationship between private investment and monetary policy in Nigeria from 1980-2009. It uses vector auto-regression techniques to test the relationship between private investment, GDP, money supply, and other factors. The results showed that money supply has a negative short-run impact on private investment, while GDP and other factors have a positive impact. In the long-run, all the variables became statistically significant. This implies that monetary policy in Nigeria has positively affected the growth of private investment and the economy over the long term. The document reviews several other studies on the relationship between financial development, private investment, and economic growth.
4.[30 39]long run relationship between private investment and monetary policy...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
11.long run relationship between private investment and monetary policy in ni...Alexander Decker
This study investigated the long-run relationship between private investment and monetary policy in Nigeria from 1981 to 2009. The results of the vector autoregression model showed that in the short-run, money supply had a negative but insignificant impact on private investment, while GDP and other factors had a positive impact. However, in the long-run all variables became statistically significant, with money supply positively affecting private investment growth. This implies that monetary policy in Nigeria has positively influenced the growth of private investment over the long-run. The study concluded that private investment and monetary policy have been negatively related in the short-run in terms of money supply, but positively related based on GDP and other factors in the long-run.
Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria 1...ijtsrd
Nigeria is a developing economy with active participation of the federal government in various economic sectors not only to promote economic growth and development but also to instill fiscal and economic discipline in the economy. Government participation in the economy means greater funding of economic activities and this is expected to impact on economic indicators. This study analyses the effect of government expenditure on inflation rate in Nigeria within a period of 39 years spanning 1981 2019 . The study specifically seek to ascertain, determine, explore and assess the extent to which government expenditures on key sectors of agriculture, education, health and telecommunications respectively affect inflation rate in Nigeria. In line with the specific objectives of this study, four research questions are raised and four hypotheses duly formulated. Data used for this study were collected from the Central Bank of Nigeria CBN Statistical Bulletin. Government Expenditure on Agriculture GOA , Government Expenditure on Education GOE , Government Expenditure on Health GOH and Government Expenditure on Telecommunication GOT are the independent variables while inflation rate INF is the dependent variable. Descriptive statistics, diagnostic test employing the Augmented Dickey Fuller and a multivariate regression based on Johanson Cointegration and Error Correction Model ECM are used to analyze the data. Our findings indicate that government expenditures on education and agriculture have positive but insignificant effect on inflation rate and on the other hand, government expenditure on health and government expenditure on telecommunications have positive and significant effect on inflation rate. Based on our findings, the study recommends that government should increase its allocation to the health and education sectors to trigger increased skills and healthcare of economic operators for enhanced human capital development and economic productivity. Government should also provide adequate infrastructures to facilitate economic growth and reduce high inflation rate. Mbanefo, Patrick Amaechi | Atueyi, Chidi Leonard "Analyzing the Effect of Government Expenditure on Inflation Rate in Nigeria (1981-2019)" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-6 | Issue-2 , February 2022, URL: https://www.ijtsrd.com/papers/ijtsrd49237.pdf Paper URL: https://www.ijtsrd.com/management/management-development/49237/analyzing-the-effect-of-government-expenditure-on-inflation-rate-in-nigeria-19812019/mbanefo-patrick-amaechi
Foreign Direct Investment and Human Capital Development in a Developing Afric...ijtsrd
This document summarizes a research paper that examines the effect of foreign direct investment (FDI) on human capital development in Nigeria from 1987 to 2018. It begins with background on FDI and human capital development. It then reviews literature on the relationship between FDI and economic growth. The study uses data from the Central Bank of Nigeria and World Bank to analyze the long-run and short-run effects of FDI and other factors like exchange rates on human capital development in Nigeria, finding that FDI has a positive short-run effect but no long-run effect. It recommends that Nigeria reduce reliance on FDI and focus it on short-term plans only.
Impact of Foreign Direct Investments on Domestic Investments in Nigeriaijtsrd
This study examines the impact of foreign direct investments on domestic investments in Nigeria. Specifically, the study seeks to ascertain the effect of foreign direct investment, per capita income, consumption expenditure, savings and debt burden on domestic investments in Nigeria using an inferential statistic like the regression analysis after determining stationarity of the variables using the ADF Statistic, as well as the cointegration of variables using the Johansen approach. Findings revealed that foreign direct investment, per capita income, consumption expenditure, savings, interest rate and debt burden are statistically significant in explaining domestic investment in Nigeria. The F test conducted in the study shows that the model has a goodness of fit and is statistically different from zero. In other words, there is a significant impact between the dependent and independent variables in the model. The study therefore recommends that There is need for government to formulate investment policies that will be favourable to local investors in order to complement the inflow of investment from abroad. Government should provide adequate infrastructure and policy framework that will be conducive for doing business in Nigeria, so as to attract the inflow of FDI. Policies that would improve per capita income of Nigeria should be pursued as this will stabilize and accelerate the rate of investment in Nigeria. Anionwu, Carol "Impact of Foreign Direct Investments on Domestic Investments in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-3 | Issue-5 , August 2019, URL: https://www.ijtsrd.com/papers/ijtsrd26725.pdfPaper URL: https://www.ijtsrd.com/management/accounting-and-finance/26725/impact-of-foreign-direct-investments-on-domestic-investments-in-nigeria/anionwu-carol
Modelling the Long Run Determinants of Foreign Portfolio in NigeriaMoses Oduh
1) This study examines the long-run determinants of foreign portfolio investment in Nigeria from 1981-2010 using time series analysis.
2) It finds that foreign portfolio investment has a positive long-run relationship with market capitalization and trade openness in Nigeria.
3) The study aims to help policymakers pursue policies that can attract more foreign portfolio investment in the long run, such as efforts to improve and sanitize the Nigerian capital market.
This study examined the effect interest rate on economic growth in Nigeria. Augmented Dickey – Fuller (ADF), Bound Test and Autoregressive Distributed Lag (ARDL) were employed to examine the effect of impact of interest rate on economic growth in Nigeria. The unit root test showed gross domestic product was 1(0) while interest rate, investment and gross capital formation were 1(1). The result of the Bound Test indicated long run relationship among the macroeconomic variables employed in the study. The result of the ARDL indicated that interest rate had negative effect on economic growth both in short run and long run. However, in the long run investment and gross capital formation were established to have positive effect on economic growth with gross capital formation being insignificant. It was concluded that interest rate has a macroeconomic tool is not effective in stimulating economic growth in Nigeria. It was recommended that the level of interest rate should be adequately controlled for the purpose of stimulating economic growth without inflationary pressure. Finally, robust macroeconomic policies aimed at ensuring economic stability should be formulated in order to increase capital formation and attract investment in order to promote economic growth.
The document provides background information on foreign direct investment (FDI) and discusses the importance of FDI to developing economies like Nigeria. It notes that Nigeria suffers from capital scarcity due to low domestic savings. While FDI can help boost capital levels and economic growth, insecurity poses challenges to Nigeria's investment climate and has led to declining FDI. The study aims to examine the impact of insecurity on FDI in Nigeria, particularly in the manufacturing and communication sectors, in order to improve economic growth and development. It outlines the statement of the problem, research questions, objectives, hypotheses and significance of the study.
11.co integration analysis of foreign direct investment inflow and developmen...Alexander Decker
This document analyzes the relationship between foreign direct investment (FDI) inflows and economic development in Nigeria from 1979-2007. It uses vector autoregression models and cointegration tests to analyze the data. The results show:
1) There is a long-run relationship between FDI inflows from Ghana and South Africa and Nigeria's GDP, implying FDI contributes to Nigeria's economic development.
2) Granger causality tests reveal Nigeria's GDP causes FDI inflows from South Africa, and FDI from both South Africa and Ghana Granger causes Nigeria's GDP.
3) In the short run, past values of variables like FDI affect current values of Nigeria's GDP, indicating F
7.[56 66]co-integration analysis of foreign direct investment inflow and deve...Alexander Decker
This document analyzes the relationship between foreign direct investment (FDI) inflows and economic development in Nigeria from 1979-2007. It uses vector autoregression models and cointegration tests to examine the impact of FDI from Ghana and South Africa on Nigeria's GDP. The results show that GDP causes FDI from South Africa and that FDI from both South Africa and Ghana Granger causes GDP, implying a long-run relationship between FDI inflows and development in Nigeria.
Developmental Effect of the Rising Debt Level in Nigeriaijtsrd
Background Nigerian economy is bedeviled by dwindling economy, low per capita income, poor infrastructural development, high unemployment rates, inadequate basic amenities, falling growth rates of GDP and recently, rated the poverty headquarters of the world which calls for empirical investigation as a way forward to resuscitate the economy.Aim The study investigated the effect of debt level on the economic development of Nigeria from 1999 to 2021. Materials and Methods Two research questions were developed to guide the study. Also, two hypotheses were formulated for the study. Ex post facto research design was adopted. The study used time series data to analyse public debt level trends in Nigeria compared to GDP growth rate over twenty three 23 years, spanning from the year 1999 to 2021. Ordinary least square regression, unit root test, and Johansen co integration test were used to analyse the data collected from Central Bank of Nigeria Statistical Bulletin. Results The results of the study showed that domestic debt level significantly and positively affects the gross domestic product performance in Nigeria. Also, the study found that external debt level significantly and negatively influences the gross domestic product of Nigeria. Conclusion The study concludes that debt level domestic and external have significant effect on Nigerian gross domestic product.Recommendation It was recommended that the government should resort to domestic debts up to sustainable debt levels that do not crowd out development and social programmes to prevent issues with debt overhang, government borrowing from international markets should be utilized effectively and concessionary loans rather than commercial loans should be sought after. Tochukwu Akaegbobi | Okeke Onyekachi, N | Onyeogubalu Ogochukwu, N "Developmental Effect of the Rising Debt Level in Nigeria" Published in International Journal of Trend in Scientific Research and Development (ijtsrd), ISSN: 2456-6470, Volume-7 | Issue-3 , June 2023, URL: https://www.ijtsrd.com.com/papers/ijtsrd57480.pdf Paper URL: https://www.ijtsrd.com.com/management/accounting-and-finance/57480/developmental-effect-of-the-rising-debt-level-in-nigeria/tochukwu-akaegbobi
1. The document analyzes the relationship between domestic savings, investment, and economic growth in Nigeria from 1970-2015.
2. It finds that domestic savings, investment, and GDP growth were low over the period studied, with fluctuating trends.
3. The study employs various econometric techniques including unit root tests, cointegration tests, vector error correction models, and Granger causality tests.
4. The results show domestic investment has a positive and significant long-run impact on economic growth in Nigeria. There is also bidirectional short-run causality between domestic investment and economic growth.
The aim of this study is to examine the impact of international capital flows on the economic growth in Jordan during the period from 2005 to 2017, The study also examines trends and composition of capital inflows. The study used descriptive analytical research method which was appropriate for the purpose of research. By using time series data, the study found that Foreign Direct Investment (FDI), foreign portfolio investment (FPI), grants (Gr) and Worker remittances (WR) are positively affecting the economic growth direct contribution. Based on the research results, the study came with a several recommendations, the most important recommendation is; the government of Jordan should create and relax the rules and regulations to attract more investors, and also the government should work hand in hand with the developed countries to create economic and employment opportunities, improve the country’s competitiveness, and expand growth within the private sector so that everyone in Jordan has the opportunity to contribute to a brighter future.
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ABSTRACT: Huzhou has rich tourism resources, as early as a considerable development since the reform and
opening up, especially in recent years, Huzhou tourism has ushered in a new period of development
opportunities. At present, Huzhou tourism has become one of the most characteristic tourist cities on the East
China tourism line. With the development of Huzhou City, the tourism industry has been further improved, and
the tourism degree of the whole city has further increased the transformation and upgrading of the tourism
industry. However, the development of tourism in Huzhou City still lags far behind the tourism development of
major cities in East China. This round of research mainly analyzes the current development of tourism in
Huzhou City, on the basis of analyzing the specific situation, pointed out that the current development of
Huzhou tourism problems, and then analyzes these problems one by one, and put forward some specific
solutions, so as to promote the further rapid development of tourism in Huzhou City.
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Enhancing Losari Beach Exploration: Augmented Reality for Immersive Visualiza...AJHSSR Journal
ABSTRACT: South Sulawesi, commonly known as Makassar, boasts rich cultural heritage and customs,
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visitors seeking to explore the city's natural beauty and cultural offerings. In this context, leveraging modern
technology such as augmented reality presents an innovative approach to showcasing Losari beach to potential
tourists. This research endeavors to introduce tourism assets in a more visually captivating manner through the
use of augmented reality. Utilizing software tools like Unity and Adobe Illustrator, the study focuses on creating
an immersive experience where tourists can interact with virtual representations of Losari beach. By simply
pointing their mobile phone cameras at designated markers or using barcode scanners, tourists can access
augmented reality features embedded within the application. The findings of this research aim to provide
valuable information, particularly for foreign tourists, about Losari beach, positioning it as a compelling
destination within South Sulawesi's diverse array of tourist attractions. Through this technological innovation,
the study seeks to enhance the visibility and appeal of Makassar city's tourism offerings on a global scale.
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Tmall in the new crown epidemic situation was analyzed, and the viewpoint was put forward :Tmall1 stabilized
the situation in the face of the epidemic situation and made a very correct countermeasures.The influence of this
epidemic on Tmall was deeply analyzed, and the conclusion was made: the new crown epidemic is both a
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Factors affecting undergraduate students’ motivation at a university in Tra VinhAJHSSR Journal
ABSTRACT: Motivation plays an important role in foreign language learning process. This study aimed to
investigate student’s motivation patterns towards English language learning at a University in Tra Vinh, and factors
affecting their motivation change toward English language learning of non-English-major students in the semester.
The researcher used semi-structured interview at the first phase of choosing the participants and writing reflection
through the instrument called “My English Learning Motivation History” adapted from Sawyer (2007) to collect
qualitative data within 15 weeks. The participants consisted of nine first year non-English-major students who learning
General English at pre-intermediate level. They were chosen and divided into three groups of three members each
(high motivation group; average motivation group; and low motivation group). The results of the present study
identified six visual motivation patterns of three groups of students with different motivation fluctuation, through the
use of cluster analysis. The study also indicated a diversity of factors affecting students’ motivation involving internal
factors as influencing factors (cognitive, psychology, and emotion) and external factors as social factors (instructor,
peers, family, and learning environment) during English language learning in a period of 15 weeks. The findings of
the study helped teacher understand relationship of motivation change and its influential factors. Furthermore, the
findings also inspired next research about motivation development in learning English process.
KEY WORDS: language learning motivation, motivation change, motivation patterns, influential factors, students’
motivation.
The Impact of Work Stress and Digital Literacy on Employee Performance at PT ...AJHSSR Journal
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with employee performance at PT Telkom Akses Area Cirebon, both concurrently and partially. Employing a
quantitative approach, the study's objectives are descriptive and causal, adopting a positivist paradigm with a
deductive approach to theory development and a survey research strategy. Findings reveal that work stress
negatively and significantly impacts employee performance, while digital literacy positively and significantly
affects it. Simultaneously, work stress and digital literacy have a positive and significant influence on employee
performance. It is anticipated that company management will devise workload management strategies to
alleviate work stress and assess the implementation of more efficient digital technology to enhance employee
performance.
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The Settlement of Construction Disputes Through Dispute Councils From the Per...AJHSSR Journal
ABSTRACT:This research differs from the practice of business activity in the construction services industry,
which may lead to construction disputes. The settlement of construction disputes is a consensus based on the
basic principle of debate. If the discussions between the parties do not reach an agreement, the parties may take
measures to resolve the dispute through the dispute council. Because the standard governing the disputes
committee was not fully regulated, they did not comply with the principle of legal certainty. Therefore, further
research was needed to establish a theoretical basis for regulating the disputes committee in settling construction
disputes. This research is a standard legal research using a legal regulatory, conceptual, and comparative
approach. The research results show that the ideal concept of resolving construction disputes through a dispute
council based on the value of legal certainty is to establish that the position of the dispute council is a special
court that has the authority to resolve construction disputes under construction services agreements. To realize
the position of the Court of Disputation as a special court, it must be based on the creation of philosophical
values, the creationof legislative regulations, and the creation of the institutional structure of the Court of
Disputation.
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VALUES OF ORAL LITERATURE IN THE SOCIETY: A STUDY OF FOLKTALES OFOGBA IN RIVE...AJHSSR Journal
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imagination in preliterate societies. It adopts the genres of literature: drama, prose and poetry in the oral milieu,
using performance as its hallmark. It thrives on the use of oral data because of its orality. This paper focuses on
the moral values or oral literature in the society using Ogba as a spring board. The study was carried out in
communities ofOgba. The population of the study consists of ten towns and village, in Ogba. The theoretical
framework used is Dell Hyme’s ethno-poetics because the works of oral literature relate to the society. This
paper concludes that oral literature serves to against all odds; communicate ideas, emotions, beliefs and
appreciation of life. The folktales in Ogba for instance, serve similar purpose through their
rendition/performance. Through the stories, the younger generation in Ogba society is familiarised with the
customs, traditions, and rituals prevalent in the society. This paper therefore recommends the use of oral
literature in all its genres to inculcate moral values and lessons to the teenagers and youths. Against this
background, Ogba (African) themselves must cease to regard oral literature as primitive and fetish.
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Pormalistikong Pagdalumat sa mga Tula ni Ron CanimoAJHSSR Journal
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pormalistikong dulog batay sa mga sumusunod na elemento: (a) Sukat at Tugma, (b) Talinghaga at
Simbolismo, (c) Imahen, (d) Tema, at (e) Diksiyon. Layunin din nitong mataya ang antas ng pagtanggap ng
ginawang pagsusuri gamit ang nabuong instrumento sa pagtataya nito. Sinunod dito ang Input-Process-Output
na balangkas ng pag-aaral at ginamitan ng kwantitatib-deskriptib-ebalwatib na pamamaraan. Sa pamamagitan
ng talatanungang ibinatay sa ginamit ni Morales (2014) na naimodipika ayon sa kahingian ng kasalukuyang
pag-aaral, tatlong (3) gurong eksperto ang nagsilbing tagataya dito na siyang tumiyak sa kahusayan ng nabuong
pagsusuri ng mananaliksik. Gamit ang Content Analysis, natuklasan na makabagong pamamaraan ang istilo na
ginamit ni Ron Canimo sa pagsulat ng mga tula. Lahat ng kanyang mga tula ay walang sinusunod na sukat at
tugma, may iba‟t ibang tayutay at simbolismong ginamit, magkaibang pandama ang pinagana dahil sa mga
imahe at paglalarawang ginawa, iba‟t ibang uri ng pag-ibig ang tinalakay at gumamit ng pormal, impormal o
kumbersasyonal na wika at makabagong istilo sa pagsulat ng tula. Gamit ang mean at standard deviation,
lumabas na “Mataas” ang antas ng pagtanggap sa kabuuan ng mga gurong eksperto na tumaya sa nabuong
pagsusuri. Lumabas din na “Mataas” ang antas ng kanilang pagtanggap sa nabuong pagsusuri batay sa mga
sumusunod na elemento: (a) Sukat at Tugma, (b) Talinghaga at Simbolismo, (c) Imahen, (d) Tema, at (e)
Diksiyon. Mula sa natayang pagsusuri at kinalabasan ng antas ng pagtanggap dito, naitala ang mga paksa sa
Junior High School Filipino na maaaring lapatan at gamitan ng nabuong pagsusuri.
KEYWORDS: Kumbensyunal, Pagdalumat, Pormalistiko, Ron Canimo, Tula
SCHOOL CULTURE ADAPTATION AMONG INDIGENOUS PEOPLES COLLEGE STUDENTS AT A PRIV...AJHSSR Journal
ABSTRACT: This qualitative study investigates the adaption experiences of indigenous college students at the
University of Mindanao, Matina-main campus. Eight major themes emerged, including difficulties with language
proficiency, online learning, classroom interaction, examination systems, grading procedures, school regulations,
resource accessibility, coping mechanisms, and future goals. Implications include the requirement for targeted
language proficiency and technology use support, an understanding of adaption processes, interventions to
improve resource accessibility, and equitable public administration policies. The study underlines the importance
of adaptation in various educational contexts, as well as the role of educators and legislators in creating inclusive
learning environments.
KEYWORDS: indigenous college students, adaptation, educational challenges, coping strategies
The effect of Institutional Ownership, Sales Growth and Profitability on Tax ...AJHSSR Journal
ABSTRACT: This research aims to test, analyze and obtain empirical evidence about the influence of
institutional ownership, sales growth and profitability on tax avoidance. The object of this research is
manufacturing companies in the consumer goods industry sector listed on the Indonesia Stock Exchange (BEI)
in 2018-2022. This research used quantitative research methods and causal research design. The sampling
technique in this research used non-probability sampling with purposive sampling as the basis for determining
the sample so that a sample of 55 samples was obtained. The data used is secondary data obtained from the
official website of the Indonesia Stock Exchange (BEI) during the 2018-2022 period. The data analysis method
used was multiple linear regression analysis with several tests such as descriptive statistical tests, classical
assumption tests, and hypothesis testing using SPSS version 26 statistical software. The results showed that the
institutional ownership variable has no effect on tax avoidance, while the sales growth and profitability has a
negative and significant effect on tax avoidance.
KEYWORDS: Institutional Ownership, Sales Growth, Profitability, Tax Avoidance
MGA ESTRATEHIYA SA PAGTUTURO KAUGNAY SA PASALITANG PARTISIPASYON NG MGA MAG-A...AJHSSR Journal
ABSTRAK: Ang mga estratehiya sa pagtuturo ay mahalagang kasangkapan sa paghahatid ng mabisang
pagtuturo sa loob ng silid. Tinukoy sa pag-aaral na ito ang antas ng kagustuhan ng mga mag-aaral sa pagsasadula,
pangkatang talakayan at paggawa ng mga koneksyon sa tunay na karanasan sa buhay bilang mga estratehiya sa
pagtuturo ng panitikan sa Filipino at pasalitang partisipasyon ng mga mag-aaral sa Baitang 7 ng Misamis
University Junior High School, Ozamiz City. Ang ginamit na disenyo sa pananaliksik na ito ay deskriptivcorrelational. Ang mga datos sa pag-aaral ay nagmula sa kabuuang populasyon na 120 na mag-aaral at tatlong
mga guro na tagamasid sa pasalitang partisipasyon ng mga mag-aaral. Ang Talatanungan sa Kagamitan sa
Pagtuturo ng Panitikan at Checklist batay sa Obserbasyon sa Pasalita na Partisipasyon ay ang instrumentong
ginamit sa pagkalap ng datos. Mean, standard deviation, Analysis of Variance at Pearson Product-Moment
Correlation Coefficient ang mga ginamit na estatistiko na sangkap. Inihayag sa naging resulta na ang tatlong piling
estratehiya sa pagtuturo ng panitikan sa Filipino ay may pinakamataas na antas ng kagustuhan ng mga mag-aaral.
Ang antas ng pakilahok ng mga mag-aaral sa paggamit ng tatlong estratehiya sa pagtuturo ng panitikan ay
pinakamataas na nagpapahiwatig na aktibong nakilahok ang mga mag-aaral sa mga gawain. Inihayag din na
walang makabuluhang kaibahan sa antas ng kagustuhan ng mga mag-aaral sa mga estratehiya sa pagtuturo ng
panitikan sa Filipino. Ito ay nangahulugan na gustong-gusto ng mga mag-aaral ang pagkakaroon ng mga
estratehiya sa pagtuturo. Walang makabuluhang kaugnayan ang kagustuhan sa mga estratehiya at antas ng
pakikilahok ng mga mag-aaral. Hindi nakaapekto sa kanilang pakikilahok ang anumang estratehiyang ginamit ng
guro.
KEYWORDS : estratehiya, karanasan, pagsasadula, pagtuturo, pangkatang talakayan
The Role of the Instruction of Reading Comprehension Strategies in Enhancing ...AJHSSR Journal
ABSTRACT :Throughout my studies and teaching English in different language centers and higher studies
institutions, I have come to conclude that students consider Reading comprehension as a nightmare that
frightens them and hinders their language acquisition in the Moroccan EFL Context. This may cause them to
develop an internal psychological obstacle that grows as their lack of the necessary instruments or tools to
overcome are not equipped with. They become lost and unaware about or unfamiliar with the necessary reading
comprehension strategies that could help them to face the problem of misunderstanding or non-understanding
of English texts. Respectively, this article which is only one part of my whole study aims at showing the effect
of teaching reading strategies in enhancing the S1 students‟ familiarity with reading strategies and raising their
frequency use. A sample of 283 University students in EFL context have been chosen randomly and have
attended the usual academic reading classes, yet only 76 are subject to this survey. 38 of them constitute the
experimental group who have attended the treatment regularly in one of the language centers and the other 38
participants are chosen randomly from the whole population to constitute the Control group. They all have
Psychosocial Factors and Deviant Behaviors of Children in Conflict with the L...AJHSSR Journal
ABSTRACT:This study aims to determine the relationship between psychosocialfactors and deviant
behaviors among children in conflict with the law (CICL) inDavao Region. The researchers want to discover the
prevalent factors thatdrive these children to their behaviors. Further, the study sought to determinethe
manifestation of psychosocial factors in terms of life satisfaction, emotionalsupport, self-esteem, and personality
traits. The study's data came from N-83children in conflict with the law (CICL) at the Regional Rehabilitation
Center forYouth (RRCY) in Bago Oshiro, Davao City; all respondents are male. This studyused a total
enumeration sampling technique due to the relatively smallpopulation size. The researchers adapted the
Psychosocial surveyquestionnaires by Zabriskie & Ward (2013) and by John and Srivastava (1999)as well as the
Deviant Behavior Variety Scale (DBVS) by Sanches et al. (2016).Through the use of a validated questionnaire,
the mean and standard deviationare determined. The researchers modified this questionnaire and translated itinto
the respondents' mother tongue (Cebuano) for them to comprehend itbetter. The study discovered no significant
relationship between psychosocialfactors and deviant behaviors of children in conflict with the law (CICL) in
theDavao Region
KEYWORDS :Children in Conflict with the Law (CICL), deviant behaviors, psychosocial factors
Entropy: A Join between Science and Mind-SocietyAJHSSR Journal
ABSTRACT: Entropy is join, intersection and interaction between natural science and human mind-society.
We proposed that if internal interactions exist in isolated systems, entropy decrease will be possible for this
system. Management in system is a typical internal interaction within the isolated system. The purpose of
management is to use regulating the internal interactions within the system, and to decrease the increasing
entropy spontaneously. We propose the principle of social civilization and the developing direction is: freedom
of thought, rule of action. Both combinations should be a peaceful revision and improvement of social rules and
laws. Different countries and nations, different religions and beliefs should coexist peacefully and compete
peacefully. The evolution of human society must be coevolution. Its foundation is the evolution of the human
heart and the human nature.
KEYWORDS: entropy, science, society, management, mind, evolution.
A Model of Disaster Resilience Among Colleges and Universities: A Mixed Metho...AJHSSR Journal
ABSTRACT :This research paper aimed to create a comprehensive framework for measuring disaster
resilience in colleges and universities. The study used a mixed method through Exploratory Factor Analysis
(EFA), which involved analyzing data from a survey questionnaire. The questionnaire was developed based on
in-depth interviews with 12 selected participants from the University of Mindanao, as well as relevant literature
and studies. It was reviewed and validated by 10 experts using a method called Content Validity Ratio (CVR).
This questionnaire was then administered to 400 students from 10 different colleges in University of Mindanao.
After conducting the Exploratory Factor Analysis and performing rotations and iterations, the researchers
identified five main constructs that characterize disaster resilience among colleges (1) disaster preparedness, (2)
disaster awareness, (3) community readiness, and (4) disaster management, (5) disaster resilience. The
researchers aimed to create an organization called “Council of College Disaster Volunteers (CCDV)” which
consist of student volunteers. These factors can be used to develop effective management strategies and
strengthen efforts in preventing and managing disasters and accidents.
KEYWORDS:content validity ratio, criminology, disaster resilience, disaster management, exploratory factor
analysis, and Philippines.
Environmental Struggles and Justice Among Lumad Farmers of Davao CityAJHSSR Journal
ABSTRACT : The study described the various environmental struggles experienced among the participants
and their status in accessing justice. The study followed a qualitative multiple-case study approach; the
participants are the Lumad farmers of Marilog, Davao City selected through a Critical sampling method and
aims to present the environmental violations experienced by the Lumad farmers in Davao City and how it
affected their families and sustenance further, their status in accessing justice is also explored. The study
concluded that the most common struggles the participant experience are Illegal logging and improper waste
disposal, which affect their farms, family, health, and income. Their preferred means to accessing justice is
through barangay settlement; the rigors of accessing courts, such as distance, expenses, fear of ruling, and the
hassle of being called to be present in court, are the most prevalent barriers that hinder the lead farmers from
accessing justice or seeking legal action. Nevertheless, the participants believed that the government would help
them in accessing justice.
KEYWORDS :access to justice, criminology,environmental justice, environmental struggles, lumadfarmers
CYBERBULLYING EXPERIENCES OF UNIVERSITY OF MINDANAO CRIMINOLOGY STUDENTSAJHSSR Journal
ABSTRACT:This paper explores the cyberbullying experiences among Criminology students at the
University of Mindanao. A simple random sampling method was used to distribute the study's online
questionnaire to the respondents and to survey the target population. This study has four hundred (400)
respondents, and the respondents are Criminology students at the University of Mindanao. The findings of this
study revealed that the level of cyberbullying experiences is sometimes manifested. On the other hand, the
cyberbullying experiences of the students indicate a moderate level, which indicates that the cyberbullying
experiences of the respondents are sometimes manifested. Also, the computations showed that among the
indicators presented, the highest mean is obtained in the psychological effect, which implies that there is a
significant effect of cyberbullying experiences of the respondents in terms of the Gender level of the
respondents. Therefore, respondents with a low level of cyberbullying experiences tend to have a moderate level
of cyberbullying experience. However, there is no significant effect in terms of age and year level of the
respondents according to the results regarding the psychological, emotional, and physical impact of
cyberbullying.
KEYWORDS :cyberbullying, emotional, experiences, psychological,physical effect, and simple random
sampling method.
A philosophical ontogenetic standpoint on superego role in human mind formationAJHSSR Journal
ABSTRACT: One of the most significant contributions of psychoanalysis to understand the human being is the
elaboration of a model about the mind from a topical and dynamic perspective. Freud explains the mind by the
constitution of the preconscious, conscious, and subconscious. Later, by three dynamic components: the id, the
ego and the superego. Such an organization of the psychic apparatus supposes not only individual elements, but
social influences along the process of hominization. In this paper, we recover the findings of the renowned
anthropologist Lewis Morgan, trying to link some of them to the psychoanalytic theory. Especially highlighting
the importance of superego in Haidt’s social intuitionism.
Keywords: evolutionism, intuitionism, psychoanalysis, Freud, Haidt, Morgan
Improving Workplace Safety Performance in Malaysian SMEs: The Role of Safety ...AJHSSR Journal
ABSTRACT: In the Malaysian context, small and medium enterprises (SMEs) experience a significant
burden of workplace accidents. A consensus among scholars attributes a substantial portion of these incidents to
human factors, particularly unsafe behaviors. This study, conducted in Malaysia's northern region, specifically
targeted Safety and Health/Human Resource professionals within the manufacturing sector of SMEs. We
gathered a robust dataset comprising 107 responses through a meticulously designed self-administered
questionnaire. Employing advanced partial least squares-structural equation modeling (PLS-SEM) techniques
with SmartPLS 3.2.9, we rigorously analyzed the data to scrutinize the intricate relationship between safety
behavior and safety performance. The research findings unequivocally underscore the palpable and
consequential impact of safety behavior variables, namely safety compliance and safety participation, on
improving safety performance indicators such as accidents, injuries, and property damages. These results
strongly validate research hypotheses. Consequently, this study highlights the pivotal significance of cultivating
safety behavior among employees, particularly in resource-constrained SME settings, as an essential step toward
enhancing workplace safety performance.
KEYWORDS :Safety compliance, safety participation, safety performance, SME
Psychological Empowerment and Empathy as Correlates of ForgivenessAJHSSR Journal
ABSTRACT: The study explores Psychological Empowerment and Empathy as Correlates of Forgiveness.
The two variables are regarded to have influence on the decision one makes to forgive another. The study aimed
at examining the relationships between psychological empowerment and forgiveness, empathy and forgiveness
and to identify which one of the two,Psychological Empowerment or Empathy, is the more powerful predictor of
forgiveness. The study took a survey design with a sample of 350 drawn from a population of university students
using a self-administered questionnaire with four sections: Personal information, Psychological empowerment
scale, Toronto Empathy questionnaire, and the Heartland Forgiveness Scale (HFS). Data analysis employed
Pearson’s product moment correlation and regression analysis to test hypotheses. The results show significant
relationships between psychological empowerment and forgiveness as well as empathy and forgiveness.
Empathy was found to be the more powerful predictor of forgiveness.
KEY WORDS: Psychological empowerment, empathy, forgiveness
Lifecycle of a GME Trader: From Newbie to Diamond Handsmediavestfzllc
Your phone buzzes with a Reddit notification. It's the WallStreetBets forum, a cacophony of memes, rocketship emojis, and fervent discussions about Gamestop (GME) stock. A spark ignites within you - a mix of internet bravado, a rebellious urge to topple the hedge funds (remember Mr. Mayo?), and maybe that one late-night YouTube rabbit hole about tendies. You decide to YOLO (you only live once, right?).
Ramen noodles become your new best friend. Every spare penny gets tossed into the GME piggy bank. You're practically living on fumes, but the dream of a moonshot keeps you going. Your phone becomes an extension of your hand, perpetually glued to the GME ticker. It's a roller-coaster ride - every dip a stomach punch, every rise a shot of adrenaline.
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This tutorial presentation provides a step-by-step guide on how to use Facebook, the popular social media platform. In simple and easy-to-understand language, this presentation explains how to create a Facebook account, connect with friends and family, post updates, share photos and videos, join groups, and manage privacy settings. Whether you're new to Facebook or just need a refresher, this presentation will help you navigate the features and make the most of your Facebook experience.
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FINANCIAL DEEPENING AND FOREIGN DIRECT INVESTMENT IN NIGERIA
1. American Journal of Humanities and Social Sciences Research (AJHSSR) 2023
A J H S S R J o u r n a l P a g e | 80
American Journal of Humanities and Social Sciences Research (AJHSSR)
e-ISSN : 2378-703X
Volume-07, Issue-08, pp-80-90
www.ajhssr.com
Research Paper Open Access
FINANCIAL DEEPENING AND FOREIGN DIRECT
INVESTMENT IN NIGERIA
Patrick, OLOGBENLA (PhD)
Department of Management and Accounting, Obafemi Awolowo University, Ile Ife, Nigeria.
ABSTRACT : This study examined the impact of FDI on financial deepening in Nigeria from 1980 to 2022.
The research questions address the trend of FDI and financial deepening in Nigeria and the relationship between
the two variables. The study will used econometrics analysis basically cointegration and error correction model
to estimate the relationship between FDI and financial deepening . The findings of this researchrevealed that
foreign direct investment exert significant impact on financial deepening in Nigeria along the long run and short
run horizon. The findings have implications for policymakers, the Nigerian government, investors, and
businesses. Understanding the impact of FDI on financial deepening helpssuggests appropriate policy measures
and strategies to enhance Nigeria's financial sector and spur economic growth. Additionally, the study
contributes to the existing literature on FDI and financial deepening, providing valuable insights for future
research in this area.
KEY WORDS: Foreign Direct Investment; Financial Deepening; Relationship
I. INTRODUCTION
Many African countries are improving their business climate to attract FDI (Ayanwale 2007). The role
and importance of FDI in financial development and economic growth in developing countries cannot be
overemphasized. This has motivated developing economies like Nigeria to attract FDI as an important source of
capital through various economic policies over the years. For instance, the Nigeria Investment Promotion
Commission (NIPC) Act enacted in 1995 is responsible for promoting and coordinating investments in Nigeria,
providing investors with information and guidance on investment opportunities, and facilitating approvals; the
Presidential Enabling Business Environment Council (PEBEC) in 2016 is aimed at reducing bottlenecks and
bureaucracy that often hinder business operations in Nigeria. Additionally, and most recently, the Africa
Continental Free Trade Agreement (AfCFTA) in 2019 aimed to create a single market for goods and services in
Africa, enhance economic integration, and stimulate foreign investments. All these policies were put in place to
attract FDI to Nigeria. Despite the significant inflow of foreign direct investment (FDI) into Nigeria in recent
years, the country's financial sector remains underdeveloped, with limited access to financial services and low
levels of financial inclusion, which have left the economy still dwindling.
According to recent data from CBN, financial markets have been fluctuating over time. For instance,
financial deepening increased between 1981 and 1988 from 10.4% to 12.2% and later declined to 9.6% in 1990.
Between 1991 and 1994, financial deepening increased to 13.0% and later declined to 8.5% in 1996.
Additionally, financial deepening moves to 15.4% in 2001 before it declines to 11.4% in 2005. Though
Nigeria’s financial deepening fluctuated substantially in recent years, according to CBN data, moving to 24.9%
in 2017, it tended to decrease through the 2018–2021 period, ending at 22.1% in 2021. The problem of
macroeconomic instability has continued to be a hindrance to the development of the financial sector in Nigeria.
Frequent policy reversals have caused disinvestment in the financial and real sectors, which has negatively
affected macroeconomic performance (Nnanna, Englama, and Odoko 2004; cited by Oriavwote&Eshenake
2014). The level of financial deepening necessary to attract the reservoir of savings and idle funds and the
efficient allocation of funds to entrepreneurs, businesses, households, and the government for investment
projects and other purposes has not been attained despite the FDI inflow to the economy. There are still
challenges with a shortage of investment finance for investors, and the economy continues to borrow to bridge
the finance-investment gap (Ihekuna, 2017). Although Nigeria's financial sector faces several challenges,
including low levels of financial literacy, a large informal sector, and inadequate infrastructure (Keykanloo,
2020), which may limit the impact of FDI on financial deepening,
As the government continues to put forth policy efforts to attract FDI into the economy, it was expected
that the financial sector should have been more deepened and developed, but this is not the case in Nigeria; the
financial sector is still slow in development, and has affected the overall performance of the economy. This has
2. American Journal of Humanities and Social Sciences Research (AJHSSR) 2023
A J H S S R J o u r n a l P a g e | 81
generated interest in examining the relationship between FDI and financial deepening in Nigeria and
determining the extent to which FDI has contributed to the development of the country's financial sector.
However, the existing literature on FDI and financial deepening is mixed. A few papers have
considered these two variables together, such as Ihekuna et al. (2017), Henri et al. (2019), and Farouq &Sulong
(2020). Some studied the impact of foreign direct investment on economic growth (Awe, 2013; Giwa et al.,
2020; Babarinde, 2020), while others considered financial deepening and economic growth (Omran and Bolbol,
2003; Oniore, 2014; Farouq et al., 2020). However, some have studied the impact of financial deepening on
foreign direct investment, such as Keykanloo et al. (2019). This study, therefore, departs from the above studies
because it focuses on foreign direct investment and financial deepening in Nigeria from 1980 to 2022.
II. LITERATURE REVIEW
Adam (2022) also examined the nexus between foreign direct investment (FDI), financial development,
and sustainable economic growth in Sudan. The study used time series secondary data from 1990 to 2020. The
study employed co-integration, Granger causality, and VAR error correction technique to estimate the models,
to showcase the relationship between FDI and its effect on the financial sector and subsequently attaining a
sustainable economic development in Sudan. The results showed that there’s evidence of observed causality
running from the country’s trade openness and the financial sector’s development. The study further indicated
that there is a complementary relationship between sustainable economic growth and both financial
development and trade openness in the short run. Interestingly, the findings of the study showed that the effect
of financial development on economic growth is further enhanced by the inflows of FDI.
A study conducted by Nkoro and Uko (2023) examined the role of the domestic financial sector development in
the relationship between foreign direct investment (FDI) inflows and inclusive growth in Nigeria using annual
time series data over the period 1981-2020. Their result revealed that the FDI exerted a significant positive
effect on inclusive growth when the domestic financial sector has reached a certain minimum level of
development. The result further showed that the FDI alone presents a significant negative effect on inclusive
growth. It therefore indicated that the domestic financial sector development is a pre-condition for FDI to
effectively promote inclusive growth in Nigeria.
Farouq and Sulong (2021) investigated the dynamic effects of foreign direct investment uncertainty on
financial development in Nigeria and the interacting role of financial inclusion and economic growth. The study
used annual time series data of Nigeria covering the period 1970 to 2018. They applied Gregory and Hansen
(1996) co-integration test, Non-linear ARDL as the elasticity estimator, and Diks and Panchenko (2006)
causality test for the analysis. The study found a non-linear uni-directional causality running from economic
growth to financial development, foreign direct investment uncertainty to financial development, and financial
inclusion to financial development. The asymmetric estimation result revealed that the coefficients' values
concerning both the positive and negative composition of financial globalization uncertainty about the response
of financial development record 31% in terms of the positive dimension and 33% in terms of the negative
composition. The study recommended that Nigerian policymakers to look outside the box and come up with
reforms and policies that will help its local financial sector and protect the domestic investors from being able to
compete extensively even when more foreign capital flows gain its way into the economy, thereby regulating the
flows and making sure that the resources are not only concentrated in one primary sector, but rather, it should be
diversified to other productive sectors to increase the real sector activities.
Giwa, George, Okodua and Adediran (2020) assessed the effects of FDI on Nigeria’s real sector
growth. The model constructed in the study was estimated using the robust GMM estimation technique. The
result of the study showed that labour quality has a positive and significant effect on RGDP in line with theory.
Also, it was noted that capital intensity displayed a significant negative effect on RGDP in Nigeria. This study
recommended that policy makers in Nigeria should incorporate into her broad policy, improvement in capital
intensity as a bedrock to growing the economy through FDI spillover effects.
In the study of Babarinde (2020), where he investigated the growth effects of foreign direct
investment and financial deepening in Nigeria for the period 1981-2021 in which he employed pairwise granger
causality test and autoregressive distributive lag (ARDL) model for his data analysis. The result of the study
revealed that foreign direct investment (FDI) has positive significant effect on economic growth in Nigeria both
in the short and long runs while financial deepening measured as ratio of broad money supply to GDP has
positive significant effect on GDP in Nigeria in the long run but the position is reversed to negative and non-
significant in the short run. However , in the long run financial deepening indicator-credit to private sector as a
ratio of GDP, has a negative non-significant effect on GDP in Nigeria while its influence is absent in the short
run. The further reveals a unidirectional causality from FDI to GDP likewise from GDP to the two financial
deepening indicators. He concluded that foreign direct investment and financial deepening has a positive growth
effects in Nigeria with causality flowing from FDI to economic growth and the latter granger causing financial
deepening in Nigeria. The study, however recommended that Nigeria Government to develop the financial
system and implement policies to stimulate FDI inflows to the country.
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The study of Kpoghul, Okpe, and Anjande (2020) investigated the tripartite relationship between
trade openness, foreign direct investment and the performance of the Nigerian economy within a framework of
macro econometric model. They employed secondary data spanning from 1970 to 2018 for within sample
forecast and a five-year out-of-sample forecast, spanning from 2019 to 2023 under four policy scenarios in line
with the Economic Recovery and Growth Plan (ERGP). They found that trade openness attracts foreign direct
investment and affect macroeconomic performance in Nigeria through direct and indirect channels.
Furthermore, the simulation results established that increase trade openness, FDI, government expenditure and
broad money supply would bring about increase in the endogenous variables such as private investment, real
consumption, outputs of oil and non-oil, significant increase in non-oil exports, and government revenues
among others. They recommended that in line with ERGP, government should build a globally competitive
economy and improves on the business environment; there should be diversification from oil to non-oil and
from narrow gauge primary exports to finished products; CBN should ensure macroeconomic stability as a
strategy for trade openness and attraction of FDI.
The study of the impact of Foreign Direct Investment (FDI) on financial deepening in Nigeria from
1981 – 2013 using the Ordinary Least Squares (OLS) technique was conducted by Ihekuna (2017). In the study,
financial deepening in the stock market was measured by the ratio of the value of stock traded to GDP, while the
ratio of money supply to GDP was used to measure financial deepening in the money market. Whereas, the sum
of the ratio of domestic credit to private sector to GDP and the ratio of stock market capitalization to GDP was
used to measure the entire financial sector deepening. The result showcase that FDI had significant positive
impact on financial deepening in the stock and money market. It was also found that FDI has a positive impact
on the entire financial sector deepening. The result also showed that trade openness had positive significant
impact on the stock market, money market and the entire financial sector deepening. But interest rate had
negative impact on financial deepening in the stock and money markets except the entire financial sector
deepening that was affected positively. The study recommended that the capital market should be highly
capitalized such that foreign institutional investors can invest in Nigeria which would result to increasing
investment and improvement in the volume and structure of savings and consequently further deepens the real
sector and capital market finance.
In investigating the effect of FDI on domestic investment in Nigeria. Aigheyisi (2017) employed
Granger causality test and DOLS estimation technique to the effects of interactions between FDI and financial
system development. The empirical evidence indicated no short run causal relationship between FDI and
domestic investment in the country. It also indicated that the long run effect of FDI on domestic investment is
positive, but not statistically significant. It however reveals that when interacted with financial system
development, FDI positively and significantly affects domestic investment. Further evidence from the study
revealed that low rate of inflation is favourable to domestic investment whereas high rate of inflation adversely
affects domestic investment. Trade openness is also observed to negatively affect domestic investment in the
country. The study recommended that there should be proper regulation of the financial system to enhance its
development in Nigeria.
Adigwe, Ezeagba, and Udeh (2015) determined the relationship between foreign direct investment,
exchange rate and gross domestic product in Nigeria. Time series data were collected for the study from CBN
Statistical Bulletin from 2008 to 2013. They employed Pearson Correlation to test the hypothesis. The findings
revealed that there is a significant relationship between FDI, EXR and GDP. The result indicated that economic
growth in Nigeria is directly related to foreign direct investment and exchange rate. The authors recommended
that there is need for government to be formulating investment policies that will be favorable to local investors
to compete with the inflow of investment from foreign countries.
Oniore (2014) also examined the impact of financial deepening; foreign direct investment on economic
growth in Nigeria from 1981 to 2012. In the study, Augmented Dickey-Fuller (ADF) test was employed for unit
root test and the variables were found to be stationary in their first difference, the Johansen co-integration
technique indicated the presence of co-integration among the variables. He also employed the Vector Error
Correction Model (ECM). The study concluded that private sector credit, liquidity ratio and foreign direct
investment have a statistically significant influence on economic growth. But the ratio of broad Money (M2) to
GDP which indicates the overall size of the financial intermediary of a country exerts a negative impact on
economic growth. It was concluded in the study that it is important to sustain the influence of finance on growth
in Nigeria which requires the sustenance of present reforms in the financial sector as well as guiding against
excess money supply on part of the monetary authorities.
Using the two-stage least squares (2SLS) method of simultaneous equation model, Awe (2013)
investigated the impact of foreign direct investment on economic growth in Nigeria for the period 1976 to 2006.
The study found a negative relationship between economic growth proxied by Gross Domestic Product (GDP)
and Foreign Direct Investment (FDI) as a result of insufficient FDI flow into the Nigerian economy. It was
recommended that Nigeria should encourage domestic investment to accelerate growth rather than relying on
4. American Journal of Humanities and Social Sciences Research (AJHSSR) 2023
A J H S S R J o u r n a l P a g e | 83
FDI as a primer mover of the economy and develop a code of conduct on FDI to curb the restrictive business
practice of multinationals and limit their repatriation of profits from Nigeria.
III. METHODOLOGY
Model specification is the expression of a relationship into a precise theoretical, mathematical, and
econometrical form. Economic theory does not indicate the functional form of any relationship, it means that
economic theory does not state whether a relationship will be expressed in linear, quadratic, or cubic form
(Goldberger, 1964). In the analysis of this study, the model modified for assessing the impact of foreign direct
investment on financial deepening was captured from the study of Ihekuna (2017) “the impact of foreign direct
investment on financial deepening in Nigeria”. The model assumes an underlying relationship between some
macroeconomic variables that can induce the depth of the financial sector. The model is thus given as:
CPSGPD = f(FDI, TOP, RIR) 1
CPSGPD = b0 + b1FDI + b2TOP + b3RIR + µt 2
Where; CPSGDP = credit to private sector as a ratio of GDP, TOP = trade openness, RIR = the real interest rate
and µt = stochastic error term.
By modifying equation (2) such that CPSGDP is replaced by FD as the dependent variable; and by introducing
gross fixed capital formation (GCF), and gross domestic product (GDP) as control variables. Thus, the
mathematical form of the model is given as:
FD = b0 + b1FDI + b2TOP + b3RIR + b4GCF + b5GDP 3
The econometric form of the model is specified as:
FD = b0 + b1FDI + b2TOP + b3RIR + b4GCF + b5GDP + µt 4
Where FD = financial deepening, FDI = foreign direct investment, TOP = trade openness, RIR = real interest
rate, GCF = gross fixed capital formation, GDP = gross domestic product, and µt = stochastic error term.
Furthermore, b1, b2, b3, b4, and b5 are the coefficients of FDI, TOP, RIR, GCF, and GDP respectively. Whereas,
b0 is the constant intercept of FD.
Sources and Methods of Data Collection
The objective of this study is to investigate the impact of foreign direct investment on financial deepening in
Nigeria. As a result, secondary data from the period of 1981 to 2022 is the basis of data used in this study, and
they were sourced mainly from the Central Bank of Nigeria and the World Bank database.
Measurement of variables
In measuring variables employed in this study, the financial deepening (FD) is measured by credit to private
sector as a ratio of GDP which is the dependent variable. The explanatory variables on the other hand are
measured as follow; foreign direct investment is measured by the volume of net FDI flows as a ratio of GDP
(FDI/GDP), the trade openness (TOP) is measured by the sum of export and import growth rate all divided by
the real GDP growth rate, the real interest rate (RIR) is measured by the percentage real interest rate, the gross
fixed capital formation (GCF) is measured by the gross fixed capital formation as a percentage of GDP, and the
gross domestic product (GDP) is measured by real gross domestic product (GDP) growth rate.
Preliminary Analysis
The preliminary analysis is performed to show the characteristics or inherent behaviors of the variables under
consideration. The preliminary test is sub-divided into (a) Trend analysis which helps to capture the trend event
of the time series variables, and this will help us in the assessment of variable movements over time. (b)
Descriptive analysis helps to capture the inherent statistical behavior of the series. The parameters include;
mean, median, mode, minimum, maximum, standard deviation, skewness, kurtosis, and Jacque-bera. (c)
Correlation analysismeasures the degree of association among variables employed in the study. The degree of
correlation can either be positive or negative. Other pre-estimation tests are:
Unit Root Test
The first step for an appropriate econometric analysis is to determine if the data in the series are stationary or
not. The unit root test is a preliminary econometric criterion that measures the level of stationarity of the
variables under consideration. Time series data can either be stationary or non-stationary. In stationary time
series, shocks will be temporary and over time their effects will be eliminated as the series revert to their long-
run mean value. On the other hand, non-stationary time series will necessarily contain permanent components
(Asteriou& Hall, 2007). However, time series analysis must be stationary to make predictable and stable
economic policies and recommendations and also forecast for the future.
Two important statistics are used to evaluate the unit root test for this study namely; the Phillip Perron (PP) test
and the Augmented Dickey-Fuller (ADF) test. To determine the position of stationarity using ADF and PP test,
if the absolute value of the ADF or PP test statistic is greater than the critical value at the 1%, 5%, or 10% alpha
level of significance, then the variables are stationary either at the level I(0), at the first difference I(1) or second
difference I(2). The unit root test was conducted with intercept specification case and Schwartz Information
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Criterion (SIC) automatic lag selection for the ADF test, while the PP test was conducted with Bartlett Kernel
spectral estimation method and Newey-West Bandwidth using Eviews.
Cointegration Test
The cointegration test is an econometric technique used in the testing correlation between non-stationary time
variables. Two series are co-integrated if they both move together along a trend at the same rate. Cointegration
talks about the convergence of an econometric system to the existence of a long-run equilibrium relationship
over time. In a time series analysis, we often encounter situations where we wish to model one non-stationary
time series (Yt) as a linear combination of other non-stationary time series (X1t, X2t, ……. Xkt). In other words;
Yt = b0 + b1X1t + b2X2t + ……… + bkXkt+ Ut 5
In general, a regression model for non-stationary time series variables gives spurious (nonsense) results. The
only exception is if the linear combination of the dependent and independent variables eliminates the stochastic
trend and produces stationary residuals, such that Yt + y1X1t + y2X2t + ……….. + ykXkt ~ I(0).
The study employed an F-bounds cointegration test, and the first step in the ARDL bounds testing approach is to
estimate the model by Ordinary Least Squares (OLS) to test for the existence of a long-run relationship among
the variables by conducting an F-test for the joint significance of the coefficients of the lagged levels of the
variables, that is:
H0: ∂1 = ∂2 = ∂3 = ∂4 = ∂5 = ∂6 = ∂7 = 0against the alternative hypothesis
H1: ∂1 ≠ ∂2 ≠ ∂3 ≠ ∂4 ≠ ∂5 ≠ ∂6 ≠ ∂7 ≠ 0
Two asymptotic critical value bounds provide a cointegration test when the independent variables are I(d)
[where 0≤d≤1]: a lower value assuming the regressors are I(0) and an upper value assuming purely I(1)
regressors. If the F-statistic is above the upper critical value, the null hypothesis of no long-run relationship can
be rejected irrespective of the orders of integration for the time series. Conversely, if the test statistic falls below
the lower critical value, the null hypothesis cannot be rejected. Finally, if the statistic falls between the lower
and upper critical values, the result is inconclusive.
Model Estimation Technique
This study adopts the ARDL-ECM bounds-test cointegration procedure to estimate the short-run and long-run
relationship among the variables under consideration. Pesaran et al. (2001) proposed an Autoregressive
Distributed Lag (ARDL) bounds testing approach to investigate the existence of a cointegration relationship
among variables. The ARDL-ECM model is specified below.
∆FDt = c0 + ∂1FDt-1 + ∂2FDIt-1 + ∂3TOPt-1 + ∂4RIRt-1 + ∂5GCFt-1 + ∂6GDPt-1 + φi∆FD
𝑝
𝑖=1 t-i+ ϕj∆FDI
𝑞
𝑗=0 t-j+
Ωl∆TOP
𝑞
𝑙=0 t-l + ωn∆RIR
𝑞
𝑛=0 t-n + βr∆GCF
𝑞
𝑟=0 t-r+ αs∆GDP
𝑞
𝑠=0 t-s + ϠECMt-1 + Ɛt
6
Where; ∂i = long run multiplier (i = 1, 2, 3, 4, 5, 6, 7)
C0 = the intercept
Ɛt = white noise.
In equation (14), φ, ϕ, Ω, ω, β, and α were the short-run dynamic coefficients of the model Convergence to
equilibrium Ϡ is the speed of adjustment, and ECM is the error correction model of lag one. Notably, the
ARDL-ECM model for the static and the dynamic impact was estimated in the form of general to specific
approach using the Ordinary Least Squares framework.
IV. RESULTS AND DISCUSSION
Unit Root Test of Stationarity
Economic variables are generally non stationary and random in nature as a result of linear combinations of
variables closely associated with economic theory. In order to assess the time series properties of variables
employed in this study, the unit root test was employed using augmented dickey fuller (ADF) and Philip Perron
(PP) test statistic. To achieve the second objective of this study which focuses on the assessment of the impact
of foreign direct investment on financial deepening in Nigeria, it is assumed that all variables must be stationary
at level I(0) and at first difference I(1) to be able to employ autoregressive distributed lag (ARDL) model.
Table 1 Summary of ADF Test Summary of PP test
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Source: Author’s Computation using Eviews, 2023. P-values in brackets ()
From table 4.3 above, it can be deduced that FD, FDI, GCF, GDP and TOP are non-stationary at level I(0) for
both ADF and PP test using the case of constant intercept, as their respective critical values are less than 5%
MacKinnon critical value. However, after the difference of the variables were taken, they were found to be
stationary at first difference I(1) for both ADF and PP tests with p-values less than 5% significant level.
Notably, INTis found to be stationary at level I(0). Consequently, Autoregressive distributed lag (ARDL) model
can be employed for the analysis of the effect of foreign direct investment on financial deepening in Nigeria.
Lag Selection Test
Another important test to be employed before ARDL analysis is the lag selection criteria. The ARDL models are
sensitive to the lag order, and in addition, optimal lag order would be helpful for reliable and consistent result.
The table below present the lag length criteria, however, Akaike information Criterion (AIC) or Schwarz
Information Criterion (SIC) will be considered for this study.
Table 2:Lag Order Selection Criteria
Lag LogL LR FPE AIC SC HQ
0 -424.5574 NA 156.4401 22.07987 22.33580 22.17169
1 -178.5214 403.7515* 0.003363* 11.30879* 13.10032* 11.95157*
2 -149.9390 38.10982 0.005633 11.68918 15.01630 12.88292
* indicates lag order selected by the criterion
LR: sequential modified LR test statistic (each test at 5% level); FPE: Final prediction error;
AIC: Akaike information criterion; SC: Schwarz information criterion; HQ: Hannan-Quinn information
criterion.
Source: Author’s Computation using Eviews, 2023.
From table 2 above, following the lag selection criteria test, it can be seen that all the information criterion (LR,
FPE, AIC, SC, and HQ) selected lag 1 as the maximum lag length. Consequently, the ARDL model for this
analysis would be estimated using lag order one (1). As far as this study is concerned, the appropriate ARDL
model selection best fit for lag one (1) using AIC Akaike information criteria is 1,0,1,0,0,0, because of its
significance and accuracy.
Cointegration Test
When a linear combination of variables are stationary at I(0) and I(1) series, then the variables may need to be
cointegrated. This means that a long-run relationship may exist among them, which connotes that they may
wander from one another in the short run, but in the long run they will move together. To establish whether
long-run relationship exists among the variables or not, cointegration test is conducted by employing F-bounds
cointegration test developed by Pesaran, Shin, and Smith (2010).
Table 3: F-Bounds Cointegration Test
ARDL Bounds Test
Null Hypothesis: No long-run relationships exist
Critical Value Bounds
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Significance I0 Bound I1 Bound
10% 2.26 3.35
5% 2.62 3.79
2.5% 2.96 4.18
1% 3.41 4.68
Test Statistic Value k
F-statistic 3.907959 5
Source: Author’s Computation using Eviews, 2023.
The result of the analysis in table 3 indicate that the calculated F-statistic (3.907959) is greater than the upper
bound critical value of 3.35, 3.79, at significance level of 10%, and 5%, respectively. It can also be deduced that
the F-statistic is greater than lower critical bound at 10%, 5%, 2.5%, and 1% accordingly. Based on this result, it
can be concluded that there is evidence of a long-run relationship among the variables incorporated in the
model. Having established co-integration relationship, it is pertinent to estimate the ARDL model to assess the
short-run and long-run impact of foreign direct investment on financial deepening in Nigeria.
Data Analysis and Discussion of Results
Table 4: Summary of ARDL
Dependent Variable: LNCPS
Method: ARDL
Selected Model: ARDL(1, 0, 1, 0, 0, 0)
Variable Coefficient Std. Error t-Statistic Prob.*
LNCPS(-1) 0.613107 0.093549 6.553854 0.0000
LNFDI 0.070312 0.030656 2.293555 0.0285
LNGCF -0.340181 0.129997 -2.616845 0.0134
LNGCF(-1) 0.336190 0.126385 2.660041 0.0121
LNGDP 0.433044 0.108858 3.978059 0.0004
INT 0.001510 0.002564 0.588827 0.5601
TOP -0.001376 0.002906 -0.473444 0.6391
C -2.503298 1.400837 -1.787001 0.0834
R-squared 0.998143 Mean dependent var 6.635387
Adjusted R-squared 0.997737 S.D. dependent var 2.753180
S.E. of regression 0.130976 Akaike info criterion -1.050755
Sum squared resid 0.548947 Schwarz criterion -0.712979
Log likelihood 29.01510 Hannan-Quinn criter. -0.928626
F-statistic 2457.242 Durbin-Watson stat 1.693013
Prob(F-statistic) 0.000000
Source: Author’s Computation using Eviews, 2023.
In line with the Durbin-Watson stat of approximately 1.69 which tends to be greater than the value of R-squared
of approximately 0.99, the model is said to be free from spurious regression and serial correlation problem.
Furthermore, with the p-value of F-statistic (0.000000), the model is said to be jointly significance. With regards
to the R-squared of approximately 0.99, it implies that the changes in explanatory variables in the model
explained about 99% of the changes in dependent variable. Consequently, the estimated long-run and short-run
result is presented below.
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Table 5 Summary of Long-run impact of foreign direct investment on financial deepening
Long Run Coefficients
Variable Coefficient Std. Error t-Statistic Prob.
LNFDI 0.181735 0.086705 2.096026 0.0441
LNGCF -0.010316 0.132127 -0.078079 0.9383
LNGDP 1.119286 0.047210 23.708567 0.0000
INT 0.003903 0.006415 0.608344 0.5473
TOP -0.003556 0.007196 -0.494190 0.6245
C -6.470252 3.038625 -2.129336 0.0410
Source: Author’s Computation using Eviews, 2023
From the table 5 above, it can be seen that the foreign direct investment (LNFDI) exertpositive and significant
effect on financial deepening (FD) in Nigeria along the long run horizon. With a coefficient of approximately
0.18 unit and a p-value of 0.0441, the result implies that a unit increase in the total foreign direct investment
would bring about 0.18 unit rise in financial deepening and vice versa. This result is conformed to the study
Aigbyeyisi(2017)who also found a positive relationship between foriegn direct investment and financial
deepening in Nigeria.
Furthermore, it can also be deduced from the table 4.7 that the gross domestic product (LNGDP) also
exert a positive and significant effect on financial deepening (FD) in Nigeria along the long run horizon. With a
coefficient of approximately 1.12 unit and a p-value of 0.0000, the result implies that a unit increase in gross
domestic product would bring about 1.12 unitexpansion in financial deepening and vice versa in the long run.
This result is in agreement with the economic theory that posited a positive relationship between GDP growth
rate and financial development in Nigeria.
Conversely, it can also be seen from table 5 above that the gross capital formation (LNGCF) exhibit
negativebutinsignificant effect on financial deepening (FD) in Nigeria along the long-run horizon. With a
coefficient of approximately -0.01 unit and a p-value of 0.9383, the result indicates that a unit increase in the
gross capital formation would bring about 0.01 unitcontraction in financial deepening and vice versa in the long
run. This result is not in line with the economic theory of positive relationship.
Additionally, it can also be seen from the table 5 that the real interest rate (INT) exhibit positivebut
insignificant effect on financial deepening (FD) in Nigeria along the long run horizon. With a coefficient of
approximately 0.004 unit and a p-value of 0.5473, the result implies that a unit increase in the interest rate
would bring about 0.004increase in financial deepening and vice versa. This result is in disagreement with the
economic theory which posited an inverse relationship between interest rate and credit to private sector.
Finally, the table 4.7 also reveals that the trade openness (TOP) exert a negative but insignificant effect
on financial deepening (FD) in Nigeria along the long run horizon. With a coefficient of approximately -0.004
unit and a p-value of 0.6245, the result indicates that a unit increase in trade openness would bring about
0.004decline in financial deepening and vice versa. This result is in disagreement with the study of Ihekuna
(2017) that found a positive relationship between trade openness and Financial deepening in Nigeria.
Table 6: Summary of Short-run impact of foreign direct investment on financial deepening
Cointegrating Form
Variable Coefficient Std. Error t-Statistic Prob.
D(LNFDI) 0.070312 0.030656 2.293555 0.0285
D(LNGCF) -0.340181 0.129997 -2.616845 0.0134
D(LNGDP) 0.433044 0.108858 3.978059 0.0004
D(INT) 0.001510 0.002564 0.588827 0.5601
D(TOP) -0.001376 0.002906 -0.473444 0.6391
CointEq(-1) -0.386893 0.093549 -4.135730 0.0002
Cointeq = LNCPS - (0.1817*LNFDI -0.0103*LNGCF + 1.1193*LNGDP +
0.0039*INT -0.0036*TOP -6.4703 )
Source: Author’s Computation using Eviews, 2023.
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From table 6 above, it can be seen that foreign direct investment (LNFDI), and gross domestic product
(LNGDP), exert positive and significant effect on financial deepening (FD) in Nigeria along the short run
horizon. This implies that with their respective coefficients of approximately 0.07 unit, and 0.43 unit; and p-
values of 0.0285 and 0.0004, a unit increase in either foreign direct investment, or gross domestic product would
bring about 7% or 43% increase in financial deepening respectively in the short run. This result is in line with
the work of Ihekuna(2017) who also found positive impact of foreign direct investment on financial deepening
in Nigeria along the short run, while the gross domestic product aligned with economic theory which posited
positive relationship between economic growth and financial sector development in the short run.
Conversely, table 6 above reveals that the gross capital formation (LNGCF) exert negative and
significant effect on financial deepening (FD) in Nigeria along the short run horizon. With a coefficient of
approximately -0.34 unit and a p-value of 0.0134, the result implies that a unit increase in the gross fixed capital
formation would bring about 34% decline in financial deepening and vice versa. This result does not conform to
the study of Idyu, Ajekwe, and Korna (2013) who found a positive relationship market capitalization and
industrial sector growth in Nigeria along the short run.
Additionally, it can also be seen from the table 6 that like the long-run result, the trade openness (TOP) also
exhibit negative but insignificant effect on financial deepening (FD) in Nigeria along the short run horizon. With
a coefficient of approximately -0.001 unit and a p-value of 0.6391, the result implies that a unit increase in the
trade openness would bring about less than 1% decline in financial deepening and vice versa. This result is in
disagreement with the study of Ihekuna (2017) and also with the economic theory which posited a positive
relationship between trade openness and credit to private sector (measure of financial deepening)
V. CONCLUSION
The cointegration test indicate that the calculated F-statistic (3.907959) is greater than the upper bound critical
value of 3.35, 3.79, at significance level of 10%, and 5%, respectively. It can also be deduced that the F-statistic
is greater than lower critical bound at 10%, 5%, 2.5%, and 1% accordingly, hence, there is evidence of a long-
run relationship among the variables incorporated in the model. Having establishedco-integration relationship, it
is pertinent to estimate the ARDL model to assess the short-run and long-run impact of foreign direct investment
on financial deepening in Nigeria. In line with the short run analysis, foreign direct investment (LNFDI), and
gross domestic product (LNGDP) exert positive and significant effect on financial deepening (FD) in Nigeria
with regard to the coefficients of approximately 0.07 unit, and 0.43 unit; and p-values of 0.0285 and 0.0004.
Conversely, the gross capital formation (LNGCF) exert negative and significant effect on financial deepening
(FD) in Nigeria along the short run horizon with a coefficient of approximately -0.34 unit and a p-value of
0.0134. Additionally, the trade openness (TOP) also exhibit negative but insignificant effect on financial
deepening (FD) in Nigeria along the short run horizon with a coefficient of approximately -0.001 unit and a p-
value of 0.6391.
Finally, the coefficient of error correction mechanism is negatively approximate to -0.39 unit and with a p-value
of 0.0002. This indicates that ECM is negative and statistically significant at 1% confirming the long-run
relationship among variables. This also implies fast speed of adjustment, as it shows that approximately 39% of
discrepancy in the previous year’s shocks will converge back to the long-run equilibrium in the current year. In
conclusion, the above analysis revealed that foriegn direct investment exert significant impact on financial
deepening in Nigeria along the long run and short run horizon.
Policy Recommendations
From the above conclusion, it is recommended that the Nigerian government should prioritize the followings:
1. In line with positive and significant impact of foreign direct investment on financial deepening in
Nigeria along both the short-run and long-run, the Nigerian government should implement policies that
create an enabling environment to attract and facilitate foreign direct investment in the financial sector
in order to strengthen financial development in the country.
2. Considering the negative and significant impact of Gross capital formation on financial deepening in
Nigeria along the short-run horizon, the Nigerian government should formulate strategies that can
improve the efficiency and effectiveness of capital and investment by strengthening financial
institutions, promoting financial inclusion, encouraging competition and innovation, improving the
investment climate, strengthening capital markets, and supporting infrastructure development in order
to foster financial development in the country.
3. Given the positive and significant impact gross domestic product on financial deepening in Nigeria
along both the short-run and the long run horizon, the Nigerian government should implement policies
that focus on fostering sustainable economic growth, promote stability which would inevitably promote
financial development in the country.
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