Quantity Surveying- Scholarly Publications

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Browsing Quantity Surveying- Scholarly Publications by Author "Fayomi, M. A."

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    Macroeconomic Variables and Foreign Direct Investment (FDI) Inflows in the Nigerian Construction Sector
    (JOURNAL OF CONSTRUCTION INNOVATION AND COST MANAGEMENT (JCICM), DEPARTMENT OF QUANTITY SURVEYING, UNIVERSITY OF LAGOS, NIGERIA, 2020) Babalola, A. J.; Fayomi, M. A.
    The inconsistence of the macroeconomic variables performance and the low gross domestic savings can attributed to the low infrastructure development in Nigeria. Toreduce the problem of poor infrastructure development in Nigeria, capital must be mobilized from the high income countries to increase the preser: low gross domestic savings. The aim of this study is to investigate the influence of macroeconom; variables on FDI inflows in the Nigerian construction sector. The methodology adopted for this stud. was an ex-post facto survey research because it was based on existing or secondary data. Annual time series data of the FDI inflows in the Nigerian construction sector, Foreign exchange rates, inflation rates; and interest rates were used. Archive materials from Central Bank of Nigeria (CBN)and National Bureau of Statistics (NBS), annual data from 1990 to 2016 were used for analysis. The variables for this stud. were tested for stationarity. The unit root test results revealed that the variables were non-stationary - levels but they attained stationarity at first difference. The regression analysis of Ordinary Least Squ (OLS)method was used to analyse the data. The result revealed that exchange rate has positive impac:: but not significant. The result also indicated that interest rate and inflation rate have negative impact FDI inflows but not significant respectively. Johansen Co- integrated test conducted revealed that th existed a long-run relationship among the variables in the study. The study also established from [ohansen Co-integrated test that FDI and construction sector is significantly eo- integrated, indicatin a valid relationship at 5%. The result from the OLS model indicated that causality that exists between FD and the construction sector is bi-directional. Hence construction sector influence FDI inflows as well FDI inflows influence construction sector in Nigeria. The causality between FDI and the constructi sector should encourage policy decisions that will improve the FDI inflows, which by extension wou, translate to boosting the construction industry's opportunity to meet infrastructure deficit.