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Natural Resources Determining FDI in Nigeria: An Empirical Investigation

  • Soumyananda Dinda

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

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.

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Article provided by Society for the Study of Business & Finance in its journal International Journal of Research in Business and Social Science.

Volume (Year): 3 (2014)
Issue (Month): 1 (January)
Pages: 75-88

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Handle: RePEc:rbs:ijbrss:v:3:y:2014:i:1:p:75-88
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