Augustine C. Osigwe
|THE IMPACT OF OIL RESOURCE ABUNDANCE ON BUILDING AND CONSTRUCTION INVESTMENT IN NIGERIA|
|Augustine C. Osigwe,
Surveillance and Forecasting Department
Nigerian Institute for Social and Economic Research (NISER),
|Abstract. This study empirically evaluated the impact of Oil Resource Abundance (ORA) on the building and construction sector investment (BCI) in Nigeria. Two Stage Least Squares (2-SLS) and the Three Stage Least Squares (3-SLS) methods of estimation were adopted in estimating the empirical model. The results revealed that ORA has a positive but insignificant effect on BCI. The degree of responsiveness of BCI to a 1% change in ORA is 0.15%. MANI positively and significantly affected BCI. The magnitude of the sensitivity of BCI to 1% change in MANI is 1.09%. REXR has positive but insignificant effect on BCI. The results further showed that the price level significantly determine the size of BCI. 1% change in the price level causes investment in the building and construction sector to drop by about 3.6%. RGDP significantly and positively affects BCI. A 1% increase in RGDP results into 3.51% increase in BCI. Finally, a 1% rise in RIR reduces BCI by about 2.3 %
|Key words: Oil, Resource Abundance, Building, Construction, Investment
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