OUTPOURING OF FOREIGN DIRECT INVESTMENT IN NIGERIA: PUSH OR PULL? | Journal of Global Economics, ..

Domestic and external factors influence foreign direct investment. The vulnerability to external factors indicates that shifts in global productivity levels (financial sentiments) can have a significant effect on foreign direct investment in Nigeria, which has been one of the main topics in the literature. The study's aim is to look into the pull and push factors that influence foreign direct investment in Nigeria.To obtain the long and short-run determinants, the analysis used the Autoregressive Distributed Lag Approach.The analysis analyses data using secondary data sets from 1986 to 2018, as well as EViews 9 production. In the long and short run, the result shows that foreign direct investment is vulnerable to pull (exchange rate depreciation and interest rate) and push factors (US gross domestic product and US interest rate).The study concludes that ‘pull' factors, rather than ‘push' factors, drive foreign direct investment into Nigeria.The study's findings revealed that spikes in foreign direct investment flow are unavoidable in deciding Nigeria's macroeconomic efficiency.International direct investment seems to have a brighter future in Nigeria's economy. Understanding the factors that drive foreign direct investment will help government and industry experts figure out how to better attract foreign direct investment to Nigeria. Foreign direct investment fluctuation is dictated by both domestic and global influences, according to the report. International direct investment is more volatile as a result of these factors. As a result, the study advises prudent management of the pull factor determinants to ensure internal economic stability, especially at a time when the Nigerian economy is experiencing a continuous drop in global crude oil prices.

Please see the link - https://ikprress.org/index.php/JGEMBR/article/view/5691