DETERMINANTS OF CAPITAL FLOWS INTO NIGERIA: AN AUTOREGRESSIVE-DISTRIBUTED LAG (ARDL) APPROACH .....

The rate of capital flows into developing markets is concerning, and it has sparked controversy in the literature. Money flows are generally seen to be helpful to developing country economies because they facilitate the effective allocation of global resources, hence improving the availability of capital for investment and economic growth. The macroeconomic determinants that affect capital movements remain disputed, despite popular assumption. In light of this, the study looked at the long- and short-term factors that influence capital flows into Nigeria. Between 1986 and 2014, the study used secondary data from the Central Bank of Nigeria (CBN), FRED Economic statistics, and the World Development Indicator. Using the Autoregressive Distributed Lag Model as an econometric approach (ARDL), the analysis discovered that the exchange rate (LnEXR) and stock market prices (LnSP) are major short- and long-run drivers of capital flows into Nigeria. As a result, it is advised that the government, through its policies, make a concentrated effort to enhance stock market activity in order to attract capital flows into the country.

Please see the link :- https://www.ikprress.org/index.php/JET/article/view/66