A Disaggregated Analysis on the Effects of Foreign Investment Inflows on Exchange Rate: Evidence from Nigeria
Keywords:
foreign direct investment, foreign portfolio investment, exchange rate
Abstract
This study is an investigation of the effects foreign investments have on exchange rate in Nigeria The work covered a period of 1987-2012 using annual data from Central Bank of Nigeria statistical bulletin A growth model via the Ordinary Least Square method was used to ascertain the relationship between foreign investment inflows and exchange rate in Nigeria Its main objective is to find the impact which foreign investments decomposed into foreign direct investment FDI and foreign portfolio investment FPI have on exchange rate and the bidirectional influences between them Of course several studies have endeavored to examine the determinants of exchange rate in Nigeria This study contributes to the literature by examining a possible determinant of exchange rate that has received less attention in the literature foreign investment inflows This paper examines this relationship with a view to determining the extent to which FDI and FPI effect exchange rate in Nigeria employing the Granger causality and OLS techniques The Granger Causality test further provides insight on the causal direction of the variables Whereas the causality tests suggest no statistical dependence between both FDI and FPI and exchange rate the regression analyses reveals exchange rate follows FPI though not significantly while FDI has an insignificant inverse relationship with exchange rate
Downloads
- Article PDF
- TEI XML Kaleidoscope (download in zip)* (Beta by AI)
- Lens* NISO JATS XML (Beta by AI)
- HTML Kaleidoscope* (Beta by AI)
- DBK XML Kaleidoscope (download in zip)* (Beta by AI)
- LaTeX pdf Kaleidoscope* (Beta by AI)
- EPUB Kaleidoscope* (Beta by AI)
- MD Kaleidoscope* (Beta by AI)
- FO Kaleidoscope* (Beta by AI)
- BIB Kaleidoscope* (Beta by AI)
- LaTeX Kaleidoscope* (Beta by AI)
How to Cite
Published
2015-03-15
Issue
Section
License
Copyright (c) 2015 Authors and Global Journals Private Limited
This work is licensed under a Creative Commons Attribution 4.0 International License.