The impact of oil resource abundance on building and construction investment in Nigeria

Authors

  • Augustine C. Osigwe Nigerian Institute for Social and Economic Research Author

Keywords:

Oil, Resource Abundance, Building, Construction, Investment

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 %

Author Biography

  • Augustine C. Osigwe, Nigerian Institute for Social and Economic Research

    Ph.D., Surveillance and Forecasting Department

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Published

2022-11-14

Issue

Vol. 1 No. 1 (2022)

Section

Articles

License

Copyright (c) 2022 Augustine C. Osigwe

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This work is licensed under a Creative Commons Attribution 4.0 International License.

All articles published in the International Journal of Economics and Society (IJES) are licensed under the terms of the Creative Commons Attribution 4.0 International License (CC BY 4.0).

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