Business Climate, Infrastructure and Institutions in Nigeria: Implication for Foreign Direct Investment

Matthew, Oluwatoyin and Kayode, Feyisayo and Osabohien, Romanus and Urhie, Ese S and Fasina, Fagbeminiyi and Folarin, Esther and Edafe, Oluwatosin D. (2021) Business Climate, Infrastructure and Institutions in Nigeria: Implication for Foreign Direct Investment. African Journal of Business and Economic Research AJBER. ISSN 1750-4562

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Abstract

The business climate in any country is one of the many factors that play a major role in attracting foreign direct investment that brings about economic growth. A favourable business climate helps countries create opportunities for mobilising private and foreign investment for growth in the economy; it engenders sustainable development and alleviates poverty. Thus, this study examined how the business climate and institutions would positively impact foreign direct investment in Nigeria, which will indirectly help in improving the business climate and institution for greater economic growth. This will assist in the attainment of SDG 9 (maintaining industry, innovation and infrastructure) and SDG 16 (attaining peace, justice and strong institutions). The study used secondary and employed the Auto-regressive Distributed Lag (ARDL) bounds test. The study found out that business climate, government stability, inflation, law and order and socio-economic condition significantly affect the inflow of foreign direct investment in Nigeria. Therefore, the study recommends that to enhance a favourable business climate that will attract foreign direct investment the Nigerian government should ensure that there is adequate security and provide infrastructural facilities to attract foreign investors.

Item Type:	Article
Uncontrolled Keywords:	Governance  Investment Profile  M21  F21  Political Environment Stability
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory
Divisions:	Faculty of Law, Arts and Social Sciences > School of Management Faculty of Law, Arts and Social Sciences > School of Social Sciences
Depositing User:	Mrs Patricia Nwokealisi
Date Deposited:	15 Jul 2022 10:21
Last Modified:	15 Jul 2022 10:21
URI:	http://eprints.covenantuniversity.edu.ng/id/eprint/16092

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