The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model

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date 2015-05-09 18:46:29
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id 10872
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originalfilename 5009-01-FH02-FESP-15-04477.pdf
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spelling 10872 https://intelek.unisza.edu.my/intelek/pages/view.php?ref=10872 https://intelek.unisza.edu.my/intelek/pages/search.php?search=!collection407072 Restricted Document Article Journal application/pdf 12 1.6 Adobe Acrobat Pro DC 20 Paper Capture Plug-in my 2015-05-09 18:46:29 5009-01-FH02-FESP-15-04477.pdf UniSZA Private Access The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model Scholars Journal of Economics, Business and Management Stock market development is essential for economic growth and prosperity in developing economies like Nigeria. Foreign Direct net flow plays a vital role in promoting economic growth through boosting the stock market development of both emerging economies, as well as developed nations. The largest numbers of the emerging economies are integrated and pursuing their international operations due to foreign direct investment. This paper investigates the impact of the stock market variables on foreign direct investment using autoregressive distributed lag (ARDL) in the presence of structural breaks (dummies) in Nigeria. The study utilized annual time series data from 1970 to 2013. The data were generated from World Bank and Central Bank of Nigeria (CBN). The result suggests that the foreign direct investment (FDI) has a significant positive long-run impact on the value of the total stock transaction, but has a negative and significant effect on the rate of stock returns. However, the relationship between FDI and market capitalization ratio is not statistically significant. Based on these findings the stock market value of the total transaction promotes FDI and thus boosts economic growth and development in Nigeria. 2 4 400-411
spellingShingle The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
summary Stock market development is essential for economic growth and prosperity in developing economies like Nigeria. Foreign Direct net flow plays a vital role in promoting economic growth through boosting the stock market development of both emerging economies, as well as developed nations. The largest numbers of the emerging economies are integrated and pursuing their international operations due to foreign direct investment. This paper investigates the impact of the stock market variables on foreign direct investment using autoregressive distributed lag (ARDL) in the presence of structural breaks (dummies) in Nigeria. The study utilized annual time series data from 1970 to 2013. The data were generated from World Bank and Central Bank of Nigeria (CBN). The result suggests that the foreign direct investment (FDI) has a significant positive long-run impact on the value of the total stock transaction, but has a negative and significant effect on the rate of stock returns. However, the relationship between FDI and market capitalization ratio is not statistically significant. Based on these findings the stock market value of the total transaction promotes FDI and thus boosts economic growth and development in Nigeria.
title The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
title_full The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
title_fullStr The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
title_full_unstemmed The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
title_short The impact of stock market development on foreign direct investment in Nigeria: An application of autoregressive distributed lag model
title_sort impact of stock market development on foreign direct investment in nigeria: an application of autoregressive distributed lag model