scholarly journals The Relationship between Foreign Portfolio Investment, Foreign Direct Investment and Economic Performance of Nigerian Economy: (1980-2017): An Empirical Analysis

2019 ◽  
Author(s):  
Ekine,D.I, Ewubare ◽  
Dennis Brown ◽  
Ajie, Charity
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Incentives ◽  
Least Square ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
External Resources ◽  
Development Indicator ◽  
Stable Economy ◽  
The Impact

The study examined the impact of foreign portfolio investment and Foreign Direct Investment on the performance of the Nigerian Economy over a period of 1980-2017. The data used were purely secondary sourced from the central Bank of Nigeria statistical Bulletin and World Bank Development indicator. The ordinary least square (OLS) regression analysis was used. The findings revealed that the performance of the Nigerian Economy is directly related to inflow of foreign portfolio investment and foreign direct investment and it is also statistically significant at 5% level. This means that a good performance of the economy depends on the inflow of these variables, or that the variables serve as an engine of economic growth. The study therefore recommends that policy makers should work on improvement of economic incentives capable of mobilizing external resources to the country to engender macroeconomic stability. A stable economy will attract foreign investment and this result to increased inflow of foreign capital.

The Impact of Exchange Rate on Foreign Private Investment in Nigeria

2018 ◽  
Vol 2 (2) ◽  
pp. 19-32 ◽  
Author(s):  
Leonard Nosa Aisien
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Private Investment ◽  
Estimation Procedure ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Private Investment ◽  
The Exchange Rate ◽  
The Impact

The study examined the impact of exchange rate on foreign private investment using quarterly time series date from Nigeria for the period 2007 to 2017. Foreign private investment in the study was disaggregated into foreign direct investment and foreign portfolio investment in order to ascertain their separate reactions to changes in the exchange rate of the naira against the US dollars. The empirical analysis was based on the VAR estimation procedure using three lagged periods adopted on the basis of various lag order selection criteria. The empirical result revealed that devaluation/depreciation of the naira adversely affects foreign direct investment and foreign portfolio investment in Nigeria. Increased in the size of the domestic market and development of the financial sector were found to stimulate foreign private investment while high inflation rate in the domestic economy discourages foreign private investment in Nigeria. The study, therefore, recommended among others that the Central Bank of Nigeria should continue to initiate more proactive policy intervention policies to stabilize the exchange rate of the naira in order to stimulate more foreign private investment in Nigeria.  

Portfolio investment outflow and the complementary role of direct investment

2015 ◽  
Vol 7 (3) ◽  
pp. 190-206 ◽  
Author(s):  
Abdullah Noman ◽  
Mohammad Nakibur Rahman ◽  
Atsuyuki Naka
Keyword(s):  
Direct Investment ◽  
Relevant Literature ◽  
Explanatory Power ◽  
Least Square ◽  
Policy Implications ◽  
Portfolio Investment ◽  
Content Type ◽  
Foreign Portfolio Investment ◽  
Complementary Role

Purpose – This paper aims to uncover potential contemporaneous relationship between foreign portfolio investment (FPI) and another popular type of cross-border investment outflow, namely, foreign direct investment (FDI). Design/methodology/approach – The relationship between FPI and FDI are modeled using simultaneous equations approach to take potential endogeneity in to account. In a panel of 45 countries over the period of 2001-2009, FPI and FDI are found to be strategically complimentary to each other. Findings – The two-stage least square estimates suggest existence of both statistically and economically significant relationship between these two types of outflows. In particular, the FDI outflow has empirically significant predictive power in explaining the FPI outflow. Similarly, the FPI outflow also has significant explanatory power for the observed level of FDI outflow. Second, the FPI has greater explanatory power for FDI outflow than the FDI for the FPI outflow. Originality/value – The authors believe that the paper would contribute to the relevant literature in terms of its originality and scope. The empirical findings of the paper have valuable policy implications.

scholarly journals An Empirical Investigation on Foreign Capital Inflows and Economic Development in Nigeria

2020 ◽  
pp. 63-76
Author(s):  
G. Tunde, Monogbe ◽  
J. Emeka, Okereke ◽  
P. Ebele, Ifionu
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Foreign Capital ◽  
Capital Inflows ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Foreign Capital Flows ◽  
Foreign Capital Inflows

In an attempt to attained sustainable level of economic development in a nation, empirical studies as well as financial theories posit that foreign capital inflows play a lead role. As such, this study set out to empirically investigate the extent to which foreign capital flows promotes economic development in Nigeria. Time series data between the periods 1986 to 2018 were sourced from the central bank of Nigeria statistical bulletin and world bank data based. The study proxied foreign capital flows using foreign direct investment, foreign portfolio investment, foreign aids and external borrowings which is decomposed into multilateral and bilateral loans while Human development index is used as proxy for economic development. The study further employed unit root test, co-integration test, error correction model and granger causality test to ascertain the direction of relationship. Findings reveal that of the five indices of foreign capital inflows, three (foreign  portfolio investment, foreign aids and bilateral loan) prove to be significant in promoting economic development in Nigeria, while foreign direct investment and multilateral loan are negatively  related to economic development in Nigeria. As such, the study conclude that foreign capital inflows in the form of foreign portfolio investment, foreign aids and bilateral loans are significant in boosting economic development in Nigeria. Therefore, we recommend that managers of the Nigerian economic should create an enabling financial environment as this will help in accelerating further inflows of portfolio investment and thus boost economic development in Nigeria.

scholarly journals Impact of Foreign Direct Investment Inflows on Economic Growth; the Case of the Republic of Seychelles

2019 ◽  
Author(s):  
Yusheng Kong ◽  
Sampson Agyapong Atuahene ◽  
Geoffrey Bentum-Mican ◽  
Abigail Konadu Aboagye
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Least Square ◽  
Small Island ◽  
Host Countries ◽  
Fdi Inflows ◽  
Economic Trends ◽  
The Republic ◽  
The Impact

This paper aims to research whether there is link between FDI inflows and Economic growth in the Republic of Seychelles Island. The ordinary least square results obtained shows that in the impact of FDI inflows on economic growth is low. Small Island Developing States attracts less FDI inflow because they are limited to few resources that attracts overseas firms which results in retarded development. The research lighted that impact of foreign direct investment on host countries does not only depend on the quality and quantity of the FDI inflows but some other variables such as the internal policies and the management skills, market structures, economic trends among others.

scholarly journals Capital flows and political conflicts: Evidence from Thailand

2020 ◽  
Vol 15 (2) ◽  
Author(s):  
Pongsak Luangaram ◽  
Yuthana Sethapramote
Keyword(s):  
Foreign Direct Investment ◽  
Capital Flows ◽  
Direct Investment ◽  
Military Coup ◽  
Portfolio Investment ◽  
Martial Law ◽  
Foreign Portfolio Investment ◽  
Political Conflicts ◽  
Different Types ◽  
Negative Effect

How do domestic political conflicts affect capital flows into Thailand? This article advances the current understanding in two ways. First, it adopts a new method for measuring political uncertainty using Thai-language newspapers over the past 20 years. Given that the nature of political conflicts is multi-faceted, these measures cover the various key components of Thai political tensions—both within and outside of parliament. Second, how different types of tensions affect capital flows are examined using a quantile regression framework—allowing an examination of effects upon the overall distribution of capital flows. The empirical results indicate that Thai political conflicts significantly and adversely affect both foreign direct investment and foreign portfolio investment at the left tails of their distribution. The results also highlight how different types of political conflicts affect capital flows in different ways. For example, uncertainty about a military coup and government measures regarding martial law or emergency decrees have a strong negative effect upon foreign direct investment flows; whereas heightened political protest and news about constitutional reform play a significant role in explaining the risk reversal of foreign portfolio investment flows. 

scholarly journals The Effect of Economic Globalization on the Economic Growth-A Study on Foreign Portfolio Investment, Foreign Direct Investment, Export and Import in 1982-2017 Period: A Case Study in China

2019 ◽  
Vol 5 (3) ◽  
pp. p347
Author(s):  
Xu Yonghong ◽  
Setyabudi_ Indartono
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Economic Globalization ◽  
Portfolio Investment ◽  
Economic Activities ◽  
Foreign Portfolio Investment ◽  
Ex Post ◽  
Ex Post Facto ◽  
Ex Post Facto Study

In the context of economic globalization, countries around the world are closely linked through economic activities such as import, export, foreign direct investment and foreign portfolio investment. Economic globalization is conducive to participating in the international division of labor, giving play to its comparative advantages and expanding overseas markets. This research is an ex post facto study using quantitative. The data used are as many as 35 data from 1982 to 2017. This study aims to determine the effect of economic globalization on economic growth, study: Foreign Portfolio Investment, Foreign Direct Investment, import and export, both directly or indirectly. The data ware validated using the VAR model, the results of this study indicate that the effects of variables on economic growth are positive.

scholarly journals Globalization and Agricultural Sector Output in Nigeria

2020 ◽  
Author(s):  
Olusegun Akinwale Samson ◽  
Oluwabusayo Temitope Obagunwa
Keyword(s):  
Foreign Direct Investment ◽  
Exchange Rate ◽  
Direct Investment ◽  
Agricultural Sector ◽  
Raw Materials ◽  
Trade Openness ◽  
Series Data ◽  
Portfolio Investment ◽  
Foreign Portfolio Investment ◽  
Integration Test

This study examined the effect of globalization on agricultural sector development in Nigeria. The study employed annual time series data from Central Bank of Nigeria Statistical Bulletin between 1986 and 2018 which were analyzed with Autoregressive Distributed Lag technique. The result of the Bound co-integration test indicated that there is long run relationship among agricultural sector output, foreign direct investment, foreign portfolio investment as a percentage of gross domestic product, trade openness and exchange rate. The result of the ARDL revealed that trade openness, foreign portfolio investment and exchange rate stimulate agricultural sector output while foreign direct investment negatively influence agricultural sector output in Nigeria. It was concluded that globalization plays important role in the development and enhancement of agricultural sector output in Nigeria through openness and financial inflow to the sector. Thus, government should formulate policy frameworks that will enhance the trade relationship between the agricultural sector and other developed nations to facilitate the inflow of important raw materials for the sector’s productivity, government should formulate policies that will ease direct investment inflow into the agricultural sector by creating linkage between foreign multi-national companies and agricultural sector in Nigeria. Finally, it was recommended that exchange rate stability should be prioritized by the government and more foreign exchange subsidy should be given to the agricultural sector to facilitate the of importation of raw materials.

scholarly journals ANALISIS BENTUK ADOPSI INTERNATIONAL FINANCIAL REPORTING STANDARD (IFRS) DALAM KONTEKS INSTITUSIONAL (STUDI EMPIRIS 30 NEGARA BERKEMBANG PERIODE 2006 - 2015)

2017 ◽  
Vol 13 (2) ◽  
Author(s):  
Rahmat Fajar Ramdani
Keyword(s):  
Foreign Direct Investment ◽  
Foreign Aid ◽  
Financial Reporting ◽  
Significant Influence ◽  
Direct Investment ◽  
Educational Quality ◽  
Portfolio Investment ◽  
Reporting Standard ◽  
International Financial Reporting Standard ◽  
Foreign Portfolio Investment

The purpose of this research is to analyzing adoption of international financial reporting standard in countries based on three institutional isomorphism perspective. This research used foreign aid as the proxy of coersive isomorphism and foreign direct investment and foreign portfolio investment, as the proxy of mimetic isomorphism, and the last to analyze normative isomorphism this research used educational quality as proxy. This research used 30 countries as the sample with ten years observation that start from 2006 to 2015. To analyze hyphotesis this research used logistic regression with SPSS version 23. This research find that foreign aid as the proxy of coersive isomorphism has a significant influence on the country's probability to fully adopting IFRS, then other result showed that educational quality as the proxy of normative isomorphism has a significant influence on the country's probability to fully adopting IFRS. This reseacrh did not show that foreign direct investment and foreign portfolio investment as the proxy of mimetic isomorphism has a significant influence on the country's probability to fully adopting IFRS. Keywords: Foreign aid, foreign direct investment, foreign portfolio investment, educational quality, IFRS adoption

The Impact of Foreign Direct Investment (FDI) on Economic Growth (EG) : Evidence from Djibouti

2021 ◽  
Vol 9 (10) ◽  
pp. 701-706
Author(s):  
Nashwa Maguid Hayel
Keyword(s):  
Economic Growth ◽  
Foreign Direct Investment ◽  
International Development ◽  
Direct Investment ◽  
Time Series Data ◽  
Developed Countries ◽  
Least Square ◽  
Series Data ◽  
Study Results ◽  
The Impact

Abstract: The achievement of EG and development is considered the core objective for both Developing Countires (DCs) and Least Developed Countries (LDCs), so countries try to get adequate funding to achieve this goal through optimal macroeconomic policies and different strategies. Countries prefer other mechanisms with less burden and cost to achieve economic growth, such as FDI flows. International development-oriented institutions such as WB and IMF recommend and consider FDI flows are the most important factors of the modern technology transfer, management, and know-how, which is necessarily needed in the local investment projects in poor countries, so FDI represents optimal external sources of growth. The objective of this study is to explain the impact of FDI on the EG of Djibouti. To achieve this objective the study used a secondary annual time series data for the period 1985-2019 by the method of Ordinary Least Square (OLS). The study results showed that FDI in the case of Djibouti tends to be statistically insignificant effects and a limited impact on Djibouti‘s EG, Moreover,other factors such as the Human Development Index(HDI), and Gross Fixed Capital Formation(GFCF), Trade Openness(TOP) shows significant effects on the Gross Domestic Product (GDP). Finally, the Consumer Price Index (CPI) has no significance in the EG of Djibouti. The findings provide critical information to Djibouti policy decision-makers to make an informed decision with regard to attracting investment sectors and policies in encouraging foreign investors to invest in the country. KEYWORDS: Foreign Direct Investment, Economic Growth, Djibouti, Empirical Analysis.

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