AWOGBENJA, BUKOLA BOLANLE and Covenant University, Theses (2022) EXCHANGE RATE FLUCTUATION AND FOREIGN PORTFOLIO INVESTMENT IN NIGERIA. Masters thesis, COVENANT UNIVERSITY.
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Abstract
The study’s major objective was to examine how exchange rate fluctuations and market capitalization had impacted foreign portfolio investment in Nigeria. This would help Nigeria achieve the Sustainable Development Goals 8 of Economic growth and 17 of partnerships with other nations. The study adopted foreign portfolio investment as its dependent variable and exchange rate fluctuations and market capitalization as its independent variables plus control variables of external debt, inflation, external reserve, real gross domestic product, real interest rate, and financial openness. The study used monthly data from 2014M1 to 2021M4 and sourced secondarily from the Central Bank of Nigeria statistical bulletin 2020 edition, Nigeria Exchange group(NGX) and World Development Indicators. The sourced data was analyzed using the Bayesian Vector Autoregression model, and the Granger Causality test. Findings from the study showed that exchange rate was positively significant in impacting foreign portfolio investment while market capitalization had a negative and significant impact on the same dependent variable. Also foreign portfolio investment granger causes exchange rate fluctuations. The study thus recommended, among others, that the internationalization of the Nigerian capital market is a necessity for both development of the market and also attracting foreign investors to the market.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Foreign Portfolio Investment, Exchange rate Fluctuations, Market Capitalization, Bayesian VAR, Granger causality |
| Subjects: | H Social Sciences > H Social Sciences (General) H Social Sciences > HG Finance |
| Divisions: | Faculty of Law, Arts and Social Sciences > School of Social Sciences |
| Depositing User: | AKINWUMI |
| Date Deposited: | 12 Sep 2022 12:03 |
| Last Modified: | 12 Sep 2022 12:03 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/16166 |
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