The Effects of Foreign Direct Investment Uncertainty on Financial Development in Nigeria: An Asymmetric Approach

Document Type : Research Paper

Authors

1 Faculty of Business Management, University Sultan Zainal Abidin, Malaysia Received: May

2 Faculty of Business Management, University Sultan Zainal Abidin, Malaysia

Abstract

This article investigates the dynamic effects of foreign direct investment uncertainty on financial development in Nigeria and the interacting role of financial inclusion and economic growth. We used the annual time series data of Nigeria covering the period 1970-2018. Through advanced econometric techniques, we first substantiated stationarity level and co-integration among the scrutinized variables, which is genuinely done for reliable findings. Following that, we applied Gregory and Hansen (1996) co-integration test, Non-linear ARDL as the elasticity estimator, and Diks and Panchenko (2006) causality test for the analysis. The Empirical evidence postulates the asymmetric nature of foreign direct investment uncertainty to financial development. We also found a non-linear uni-directional causality running from economic growth to financial development, foreign direct investment uncertainty to financial development, and financial inclusion to financial development. In the end, the authors proposed the needed policy recommendations to strengthen the Nigerian financial sector.

Keywords

Main Subjects


Article Title [فارسی]

اثرات عدم قطعیت سرمایه گذاری مستقیم خارجی بر توسعه مالی در نیجریه: یک روش نامقارن

Authors [فارسی]

  • ابراهیم سامبو فاروق 1
  • زنیده سولانگ 2
1 دانشکده مدیریت بازرگانی، دانشگاه سلطان زین العابدین، مالزی
2 دانشکده مدیریت بازرگانی، دانشگاه سلطان زین العابدین، مالزی
Abstract [فارسی]

این مقاله اثرات پویای عدم قطعیت سرمایه گذاری مستقیم خارجی بر توسعه مالی در نیجریه و همچنین نقش تعاملی شمول مالی و رشد اقتصادی را بررسی می کند. ما از داده های سری زمانی سالانه نیجریه بین سالهای 1970 تا 2018 استفاده کردیم. با استفاده از تکنیک های پیشرفته اقتصادسنجی، ابتدا سطح ایستایی و ادغام دوسویه میان متغیرهای یافته شده را – که در اصل برای یافته های پایا صورت می گیرد – مشخص گردید. سپس آزمون ادغام دوسویه  گریگوری و هانسن (1996)، ای آر دی ال غیرخطی به عنوان پیش بینی کننده کشش، و آزمون علیت دیکس و پانچنکو (2006) اجرا شد. یافته های تجربی ماهیت نامتقارن عدم قطعیت سرمایه گذاری خارجی را بر توسعه مالی تایید می کند. ما همچنین یک رابطه علی غیرخطی تک سویه بین رشد اقتصادی و توسعه مالی، عدم قطعیت سرمایه گذاری مستقیم خارجی و توسعه مالی، و شمول مالی و توسعه مالی یافتیم. در نهایت، ما چند راهکار مربوط به سیاست گذاری به منظور تقویت بخش مالی نیجریه ارایه می کنیم.

Keywords [فارسی]

  • ای آر دی ال خیرخطی
  • دیکس و پانچنکو
  • گریگوری هانسن
  • تعامل
  • توسعه مالی
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