The Determinants of Private Domestic Investment in Nigeria
AbstractThis study focalize the private domestic investment. The choice is to enable us study the implications of the policy shift of Nigerian government that placed emphasis on private sector as an engine of growth. The policy makers believe that private investment has a stronger and more favorable effect on growth than public investment, probably because private investment is more efficient and less closely associated with corruption. This study however analyzed the determinants of private investment in Nigeria using a time series data and an error correction mechanism. The paper discussed the trends in investment and also reviewed the literature on the topic. Empirical investigations showed that changes in real private investment in Nigeria are best explained by changes in political trend by a dummy variable representing political instability; macroeconomic instability and poor infrastructure. The econometric results suggested that political crises may have created a climate hostile to private investment in Nigeria. The overall measure of political and macroeconomic instability has been a major hindrance to private investment. The results suggested the need for the government to continue to develop the infrastructural base of the economy in order to boost the private sector.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Far East Research Centre in its journal Far East Journal of Psychology and Business.
Volume (Year): 4 No 2 Paper 3 August (2011)
Issue (Month): 3 (August)
Contact details of provider:
Web page: http://www.fareastjournals.com/journal_detail.aspx?jid=18
Private Domestic Investment; Infrastructure; Corruption; Political Instability; Investment Climate; Private sector;
Find related papers by JEL classification:
- M1 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Serven, Luis & Solimano, Andres, 1992. "Private Investment and Macroeconomic Adjustment: A Survey," World Bank Research Observer, World Bank Group, vol. 7(1), pages 95-114, January.
- Easterly, William & Levine, Ross, 1997.
"Africa's Growth Tragedy: Policies and Ethnic Divisions,"
The Quarterly Journal of Economics,
MIT Press, vol. 112(4), pages 1203-50, November.
- Easterly, W & Levine, R, 1996. "Africa's Growth Tragedy : Policies and Ethnic Divisions," Papers 536, Harvard - Institute for International Development.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jim Chau).
If references are entirely missing, you can add them using this form.