INVESTMENT AND MACRO ECONOMIC PERFORMANCE IN NIGERIA

Callistus Ogu (Ph.D), Paschal Kem Ojimadu (PhD)

Abstract


This study examined investment and macro economic performance in Nigeria. The data were collected from the Central Bank of Nigeria statistical bulletin and the Nigeria Bureau of Statistics for the period ranging from 1980 to 2016. The ordinary least square technique of multiple regressions was used in analyzing the data. The result shows that GDP has a positive impact on investment and interest rate has a negative impact on investment in Nigeria. Other test such as multicolinearity, heteroskedasticity and autocorrelation were tested in order to ensure comprehension and adequacy of the research work. On the basis of my findings, it was discovered that an increase in GDP has a significant impact on the total volume of investment in Nigeria, while fluctuations in interest rate has negative impact on investment in Nigeria. The intercept shows that there are other factors other than the ones specified in the model which militates on investment growth in Nigeria. To the following observation, it was recommended that government should design programmes that would attract more foreign and domestic investment in the country as it would go a long way in increasing aggregate income needed by the government in meeting its social responsibility. Also, the monetary authority should stabilize exchange rate and interest rate as well as watch the demand pattern of money for precautionary, transactionary, and speculative purpose to offset the risks and uncertainty that may deter the interest of investors.   


Keywords


Investment, Exchange Rate, Interest rate, Gross Fixed Capital formation, Gross domestic product

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References


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