IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-05150205.html
   My bibliography  Save this paper

Modelling the Effects of Foreign Trade and Foreign Direct Investment on Capital Formation in Nigeria: The Robust Least Squares Models

Author

Listed:
  • Godwin Lebari Tuaneh

    (Department of Agricultural and Applied Economics, Rivers State University, Port Harcourt, Nigeria.)

  • Udoadugo Mefo

    (Department of Agricultural and Applied Economics, Rivers State University, Port Harcourt, Nigeria.)

Abstract

Applying a consistent estimation technique on data robust empirical results which the private and public poly makers can rely on. This study examined the effects of foreign trade and Foreign Direct Investment on capital formation in Nigeria. The objectives of the study were to analyze the effects of total export, total imports and foreign direct investment on capital formation over the period studied. The study sourced yearly time series data which spanned through 1980-2020 from the Central Bank of Nigeria Statistical Bulletin. The data was subjected to statistical analysis (the OLS and the robust least squares) using the Eviews 12.0. The post estimation result of the OLS showed a violation of the OLS assumption. Further check using leverage and influence plots revealed the presence of outliers. The study therefore employed the robust least square regression to overcome the shortcoming of the OLS regression. The information criteria showed that that the robust least square regression was superior to the OLS result, however, among Bi-square M-estimation, the Huber M-estimation, and MM-estimation class of robust regression, the MM-estimation was the best model with the least information criteria (Akaike info criterion = 59.66) the results showed that only total export was significant in affecting capital formation.

Suggested Citation

  • Godwin Lebari Tuaneh & Udoadugo Mefo, 2022. "Modelling the Effects of Foreign Trade and Foreign Direct Investment on Capital Formation in Nigeria: The Robust Least Squares Models," Post-Print hal-05150205, HAL.
    • Handle: RePEc:hal:journl:hal-05150205
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-05150205. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.