Exchange Rate and Foreign Direct Investment in Nigeria 1981-2018

Okonkwo, Jisike Jude; Osakwe, Charity Ifunanya; Nwadibe, Emelda Chidimma

doi:10.6007/ijarbss/v11-i1/8466

Cited by 4 publications

(4 citation statements)

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“…Foreign investment remains a major job driver and it is crucial to macroeconomic factor for encouraging job enabling environment (Okonkwo et al, 2021;Amain 2001). Foreign Investments serves as pre-requisite in gaining job-enabling economic and social platform (Altman 2003 andChili 2000).…”

Section: Foreign Investment and Job Creationmentioning

confidence: 99%

“…LITERATURE REVIEW Exchange rate can be defined as the value of one currency when compared with another, the price at which one country exchanges her currency with customers of another country (Okonkwo, Osakwe & Nwadibe 2021;Mordi 2006). This exchange rate can be seen as depreciation, appreciation, devaluation and revaluation (Dornbusch, Fisher and Startz, 2011).…”

Section: Introductionmentioning

confidence: 99%

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Effects of Exchange Rate on Job Creation in Nigeria

Okonkwo

Ebiringa

Asiegbu

et al. 2023

Financ. account. res. j.

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Job Creation has been the source of social and human engineering towards economic development. Creation of Jobs remains crucial in eradicating social menace, thereby bringing strong connection between macro and micro economic space. The study used annual observation time frame of 2000 to 2018, to reveal effects of exchange rates on job creation. A developing country (Nigeria) was selected as a case study due to its high level of jobless growth, inspite of currency depreciation of Naira against Dollar. The study employed the unit root test, co-integration test, error correction model and the granger causality test. The study found out that exchange rate has positive influence on job creation, though insignificant in the short run, but with 80% error correction model, the variables have the capacity of being significant at the long run. It was further seen that a unidirectional causality exists among exchange rate and job creation. In light of the findings, the study recommended for concerted efforts by stakeholders as regards policies and programmes that provide enabling environment for stable exchange rate and sustainable foreign investment inflow into Nigeria that will lead to increased trend of Job Creation. Keywords: Exchange Rate, Job Creation, Employment, Foreign Direct Investment and Foreign Portfolio Investment.

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Section: Foreign Investment and Job Creationmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Effects of Exchange Rate on Job Creation in Nigeria

Okonkwo

Ebiringa

Asiegbu

et al. 2023

Financ. account. res. j.

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“…The examination of the exchange rate and FDI in Nigeria by Okonkwo et al [2021] from 1981 to 2018 shows a favorable correlation between real and nominal exchange rates and FDI. The study is comparable to that of Xing [2006], who noted that China is more alluring for FDI and suggested that the CBN ought to provide a sufficient flow of foreign currency on the currency exchange market and maintain a sustainable level of exchange rate to draw in more foreign direct investment.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

The Nexus Between Foreign Direct Investment and Nominal Exchange Rate, Real Gdp, and Capital Stock in Tanzania

Utouh,

Tile

2023

aspe

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Aim: The paper aims to examine the relationship between FDI and the nominal exchange rate, real GDP, and capital stock in Tanzania using quantitative research methods and an econometric analysis. The analysis aims to provide insights into the factors that affect FDI and contribute to the existing literature on the relationship between FDI and economic growth. Methods: This study examines the relationship between FDI inflow, real GDP, capital stock, and the normal exchange rate in Tanzania using a robust research methodology. The study employs STATA 15 software and Akaike’s Information Criteria (AIC), Schwarz Information Criteria (SC), Final Prediction Error (FPE), and the Hannan Quinn (HQ) Information Criteria. In addition, the autoregressive model, the Johansen co-integration test, and the Toda-Yamamoto Granger causality (modified WALD) test were employed to determine the optimal lag. Results: The results indicate a bidirectional relationship between the nominal exchange rate and FDI in Tanzania, with FDI inflows influencing the nominal exchange rate volatility and vice versa. Furthermore, the results indicate that real GDP, capital stock, and the nominal exchange rate exert a unidirectional influence on FDI influx in Tanzania. Conclusions: The nominal exchange rate and capital stock have positive and negative correlations with foreign direct investment. Like many other African economies, Tanzania remains vulnerable to external forces despite making significant strides in stabilizing the exchange rate. It is recommended that the Central Bank of Tanzania – along with those of other African nations with similar economic structures – maintain a stable nominal exchange rate level as an incentive for foreign investors in order to increase the inflow of foreign direct investment.

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“…, Okonkwo, Osakwe, and Nwadibe (2021) andHavi (2021) Moraghen et al (2021),. used a Vector Error Correction Model (VECM) for the period 1976-2018, revealed that exchange rate volatility and higher exchange rate has negative impactFDI in the economy of Mauritius.…”

mentioning

confidence: 99%

Risk Premium, Interest Rate, Inflation and FDI in the Time of Coronavirus: a Case Study of Mena Countries

Al-shakrchy¹,

Makttoof²,

Alnassar³

2023

J. Professional Business Review

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Purpose: the purpose of study is estimate the Risk premium, Interest rate, Inflation and FDI in the through of Coronavirus in the MENA countries. Theoretical framework: The theoretical framework included the study of the main variables, which are risk premium, interest rate, inflation, and foreign direct investment during the Corona virus pandemic. Design/methodology/approach: Concentrating on “COVID-19”, as an effective factor on the Foreign direct investment (FDI), I employ data of “MENA (Middle East and Northern Africa)” countries from 2000 to 2021 to investigate the impact of COVID-19, financial and macroeconomic indicators on FDI relying on the analytic research approach of Static panel data regression, including Pooled OLS, Fixed effect (FE), and Random effect (RE) using STATA software as the statistical evaluation tool. Findings: The outcome, as expected, reveals the significant negative impact of “inflation”, real interest rate” and “COVID-19”, and positive impact of “exchange rate”, and “GDP per capita” on “FDI” in MENA economies. Research, Practical & Social implications: This suggests that supporting and handling pandemic situations and improving financial measures by government may lead to higher rate of foreign investment particularly FDI. Originality/value: The findings of this analysis will be valuable for the “policymakers” to prepare suitable strategies in promoting foreign investment in economies.

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Exchange Rate and Foreign Direct Investment in Nigeria 1981-2018

Cited by 4 publications

References 0 publications

Effects of Exchange Rate on Job Creation in Nigeria

Effects of Exchange Rate on Job Creation in Nigeria

The Nexus Between Foreign Direct Investment and Nominal Exchange Rate, Real Gdp, and Capital Stock in Tanzania

Risk Premium, Interest Rate, Inflation and FDI in the Time of Coronavirus: a Case Study of Mena Countries

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