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oa African Journal of Governance and Development - An econometric analysis of the investment climate and growth potential in Nigeria

Volume 2, Issue 1
  • ISSN : 2218-5615
  • E-ISSN: 2616-9045

 

Abstract

The slow economic growth rate experienced by most developing countries, including Nigeria in the late 1970s and the early 1980s, has now manifested itself in the form of macro-economic imbalances, a wide saving/investment disparity, a steep inflationary spiral, and a high debt overhang. Hence, the study examines improving the Nigerian investment climate for enhanced economic growth. The data was sourced from the and National Bureau of Statistics. The level testing results reveal that none of the variables were stationary at its levels. However, the absolute values of the variables in the first-difference is greater than the Mackinnon Critical value as provided by EVIEWS Package, which means that we do not reject the null hypotheses for the non-stationary series. It was observed that there were many reasons for the poor economic performance of the Nigerian economy, among which was the decline in investment rates. It is thus recommended that polices which will improve and encourage investment should be institutionalised, a stable macro-economic framework should be pursued, a favourable fiscal regime should be promoted, and the financial sector strengthened by diversification to achieve investment objectives.

A taxa de crescimento econômico lento vivida pela maioria dos países em desenvolvimento, incluindo a Nigéria no final dos anos de 1970s e início de 1980s, já se manifestava na forma de desequilíbrios macroeconómicos, uma grande poupança/disparidade de investimentos, uma espiral inflacionária íngreme, e um alto excesso da dívida. Assim, o estudo analisa a melhoria do clima de investimento nigeriano para um maior crescimento econômico. Os dados são provenientes do and National Bureau of Statistics. Os resultados dos testes revelam que nenhum nível das variáveis é estacionário. No entanto, os valores absolutos das variáveis na primeira diferença é maior do que o valor crítico de Mackinnon, tal como previsto pelo pacote EVIEWS, o que significa que não rejeitam as hipóteses nulas para a série de não-estacionária. Observou-se que havia muitas razões para o fraco desempenho econômico da economia nigeriana, entre os quais o declínio nas taxas de investimento.Portanto, recomenda-se que as políticas que irão melhorar e incentivar o investimento devem ser institucionalizada, um quadro macroeconómico estável deve ser desenvolvido, um regime fiscal favorável deve ser promovido, e o sector financeiro fortalecido pela diversificação dos seus produtos para alcançar os objetivos dos investimentos.

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/content/ajgd/2/1/EJC195202
2013-06-01
2020-09-27

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