The impact of kidnapping on foreign ownership of firms in Nigeria

Abstract

Nigeria is one of the countries in Sub-Saharan Africa (SSA) that has faced high incidents of kidnapping. As a result of that, some studies have investigated its determinants and economic consequences in Nigeria. However, no study is yet to investigate its impact on the foreign ownership of firms. This is a research void that this article has attempted to fill. Using the World Bank Enterprise Survey and the United Nations Office on Drugs and Crime, we found empirical evidence of the negative impact of kidnapping on the foreign ownership of firms. An increase in the kidnapping rate by one (1 per 100,000 of population) will reduce the foreign ownership of firms by 4.855-10.098% depending on the econometric model. There is also empirical evidence that the impact of kidnapping on foreign ownership will vary by geographical regions in Nigeria and by firm size. Policy implications were deduced from our findings.

Exploring the Effects of Criminal Activities on Sustainable Tourism Development in Cross River State-Nigeria

“…However, the presence of security forces can also create tensions, as seen in Egypt's case, where increased military presence disrupted the tourist experience in response to kidnappings in the Sinai Peninsula. Tourist awareness and precautions, staying in secure accommodations, and being cautious in unfamiliar environments, are crucial to reducing the risk of kidnapping, because it can be very useful for cities that are World Heritage Sites to know the preconceived ideas that visitors have before visiting the city, along with how satisfied they feel with the trip when it is finished, this information can be used to continuously improve the tourist experience (Caple and Williams, 2023;Jimber del Rio et al, 2020;Ede and Okafor, 2023). Governments often provide travel advisories and safety guidelines for citizens traveling abroad and for leisure and recreational activities.…”