Modelling the Long Run Determinants of Domestic Private Investment in Nigeria
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Date
2012
Authors
Ajide, K.B
Lawanson, O.I
Journal Title
Journal ISSN
Volume Title
Publisher
Canadian Center of Science and Education
Abstract
The paper seeks to model the long run determinants of domestic private investment in Nigeria over the period
1970 to 2010, employing advanced econometric technique of Auto-RegressiveDistributed Lag (ARDL) bounds
testing approach. Emanated from the estimated models are intriguing findings which showed clearly that
difference exist between long and short mn determinants. Public investment, real GDP, real interest rate,
exchange rate, credit to the private sector, terms of trade, external debts and reforms dummy are the key long run
determinants of domestic private investment while public investment, real GDP and terms of trade are
statistically significant in the short run. The policy prescriptions are that necessary infrastructures to complement domestic private investment should be put in place; that external debts be reduced to the barest minimum and negative effects of external shocks engendered by foreign direct investment uncertainty and deficit terms of trade . should be prevented altogether.
Description
Staff Publications
Keywords
Domestic private investment , Bound testing approach , Nigeria , Exchange Rate
Citation
Ajide, K.B and Lawanson, O.I (2012) Modelling the Long Run Determinants of Domestic Private Investment in Nigeria . Asian Social Science