Omeire, Mercy C. and Covenant University, Theses (2023) FISCAL DEFICIT, ECONOMIC DEVELOPMENT AND FOREIGN DIRECT INVESTMENT IN NIGERIA. Masters thesis, Covenant University Ota.
![[img]](http://eprints.covenantuniversity.edu.ng/style/images/fileicons/application_pdf.png) |
PDF
Download (206kB) |
Abstract
This study aimed at analyzing the effect of fiscal deficit on FDI as well as the interaction of fiscal deficit and economic development on FDI. The variables explored in this study are FDI as dependent variable, Fiscal deficit and HDI being a proxy for economic development. The analysis relied on annual time series data from the Central Bank of Nigeria (CBN) and World Development Indicators (WDI) for the period 1990 to 2021. Employing the Autoregressive Distributed Lag (ARDL) framework. The findings of the study were that Fiscal deficit had a positive and statistically insignificant effect on FDI inflow to Nigeria but not in the long run. Further, HDI one period lagged and three period lagged were significant for FDI in the short run while HDI had a negative and statistically significant effect on FDI inflow in the Long run. Fiscal expenditure was negative and significant in both the short run and long run in bringing about a decline in FDI inflow to Nigeria. This present study concludes that fiscal deficit affects FDI negatively in Nigeria while HDI also adversely affects FDI inflow to Nigeria. However, Fiscal deficit interaction with economic development has no significant effect on FDI inflow to Nigeria. As a result, government must ensure better management of spending as well as judicious spending of revenues on economic development initiatives in order to ensure a well-managed fiscal deficit that can engender increased rates of FDI inflow to Nigeria and will disincentives FDI outflows from Nigeria.
| Item Type: | Thesis (Masters) |
|---|---|
| Uncontrolled Keywords: | Foreign Direct Investment inflow, fiscal deficit, economic development Nigeria |
| 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: | nwokealisi |
| Date Deposited: | 13 Sep 2023 08:54 |
| Last Modified: | 13 Sep 2023 08:54 |
| URI: | http://eprints.covenantuniversity.edu.ng/id/eprint/17299 |
Actions (login required)
 |
View Item |
