EXCHANGE RATE FLUCTUATIONS, FOREIGN DIRECT INVESTMENT AND FINANCIAL DEVELOPMENT IN NIGERIA | Journa

Over the period 1970 to 2020, this study investigates the link between exchange rate variations, foreign direct investment, and financial development in Nigeria. The link between the variables of interest is investigated using the Autoregressive distribution lag estimation approach. The findings demonstrate that while foreign direct investment has a favourable link with exchange rate changes, trade openness and inflation have a negative impact on the flow of foreign direct investment into Nigeria. According to the findings, the interaction between currency rate volatility with foreign direct investment has a detrimental impact on Nigeria's financial development. As a result, this study suggests that the Nigerian government should pursue measures aiming towards strengthening the interplay between currency rate and foreign direct investment, which would have a good influence on the financial sector's development.

Please see the link :- https://www.ikprress.org/index.php/JET/article/view/7447