Uche C. Nwogwugwu, Benedict Ikemefuna Uzoechina
|ECONOMIC CRIMES AND THE FOREIGN DIRECT INVESTMENT IN NIGERIA|
|Uche C. Nwogwugwu, Benedict Ikemefuna Uzoechina|
|Abstract. This study examines the determinants of Foreign Direct Investment with specific interest in economic crimes in Nigeria. The study spans through 1970 to 2013. The motivation for this study was borne out of the great divide that characterized empirical works on the impact of FDI on the Nigerian economy, which to a large extent is predicated on the macroeconomic environment. Although, theoretically, scholars believe that economic crimes influence the level of FDI inflow in any economy, there is, however, difficulty in getting appropriate proxy for economic crimes for empirical investigation. This present study is an attempt to bridge this gap in literature. OLS technique was adopted as method of estimation employing Stata 11 software. Long run and short run relationships were investigated using cointegration test and error correction model respectively. The data for the study was tested for unit root using Augmented Dickey –Fuller (ADF) test. Econometric evidence shows that economic crimes have negative relationship with FDI growth in Nigeria in both short and long runs but with greater long run impact. While only IFFs and RGDP impact significantly on FDI in the long run, all the independent variables have short run impact on FDI with INFR, INTR and EXR making the greatest impact in the short run. It is recommended that the government should ensure the diversification of the domestic economy in order to increase the size of the domestic market. This no doubt will increase FDI inflow in Nigeria. Second, government must show genuine commitment in the fight against economic offenders, but in doing so, she must also pursue infrastructural development that has the tendency of creating employment and reducing poverty in Nigeria.|
|Key words: Foreign Direct Investment, Economic Crimes.
. Alege, Philip O. (2014). Foreign direct investment and economic growth in ECOWAS: A System-GMM approach. Covenant Journal of Business and Social Sciences (CJBSS) (5) 1.
|Information about authors:|
Uche C. Nwogwugwu, Ph.D (Economics), Associate Professor of Economics, Department of Economics
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