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investment in Nigeria | Sycamore

 · investment in Nigeria Victoria Egba June 22, 2020 0 1,031 Top 7 Investment Opportunities in Nigeria Investment is very crucial in attaining financial stability and preparing for the future. In Nigeria, there are various sectors with ...

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INVESTMENT IN NIGERIA

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Investment expenditure in economic analysis is both a component of aggregate demand and an injection into the circular flow of national income. It is a crucial variable on the supply side of the economy as it is the means by which changes in the real capital stock are brought about, thereby adding to country''s productive capacity.

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The purpose of this study is to examine the determinants of investment in the Nigeria economy making use of time series data for the period 1970-2003. The study employed the Ordinary Least Square (OLS) and the Cochrane Orcutt technique of estimation.

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Public investment and private domestic investment are autonomous in Nigeria. Following the findings, the study recommends that more emphasis of governments'' expenditure should be on infrastructures that help on capital formation which will inturn increase private domestic investment, instead of reccurent expenditures that have no effect on private domestic investment.

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The main conclusion which emerged from the analysis is that increase in investment will lead to an increase economic growth. The policy implication of this finding calls for the harmonization of interest rate policy, exchange rate, financial savings, inflation rate, and maintaining a stable macroeconomic environment and financial reforms to stimulate investment and capital accumulation.

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