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Natural Resources Determining FDI in Nigeria: An Empirical Investigation

Author

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  • Soumyananda Dinda

    (Department of Economics, S.K.B.University, Purulia,West Bengal, India)

Abstract

This study investigates the determinants of FDI to Nigeria during 1970-2006. This study suggests that the endowment of natural resources, trade intensity, macroeconomic risk factors such as inflation and exchange rates are significant determinants of FDI flow to Nigeria. The findings suggest that in long run, market size is not the significant factor for attracting FDI to Nigeria, it contradicts the existing literature. The findings indicate that FDI to Nigeria is resource-seeking. Results also suggest that trading partner like the UK in North-South (N - S) and China in South-South (S - S) trade relation have strong influence on Nigeria’s natural resource outflow.

Suggested Citation

  • Soumyananda Dinda, 2014. "Natural Resources Determining FDI in Nigeria: An Empirical Investigation," International Journal of Research in Business and Social Science, Society for the Study of Business & Finance, vol. 3(1), pages 75-88, January.
  • Handle: RePEc:rbs:ijbrss:v:3:y:2014:i:1:p:75-88
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