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Impact of Selected Macroeconomic Variables on Capital Inflow in Nigeria
Content Structure of Impact of Selected Macroeconomic Variables on Capital Inflow in Nigeria
- The abstract contains the research problem, the objectives, methodology, results, and recommendations
- Chapter one of this thesis or project materials contains the background to the study, the research problem, the research questions, research objectives, research hypotheses, significance of the study, the scope of the study, organization of the study, and the operational definition of terms.
- Chapter two contains relevant literature on the issue under investigation. The chapter is divided into five parts which are the conceptual review, theoretical review, empirical review, conceptual framework, and gaps in research
- Chapter three contains the research design, study area, population, sample size and sampling technique, validity, reliability, source of data, operationalization of variables, research models, and data analysis method
- Chapter four contains the data analysis and the discussion of the findings
- Chapter five contains the summary of findings, conclusions, recommendations, contributions to knowledge, and recommendations for further studies.
- References: The references are in APA
- Questionnaire.
Abstract of Impact of Selected Macroeconomic Variables on Capital Inflow in Nigeria
In the face of capital deficiency in financing long term development, the capital-deficient economies have heavily resorted to foreign capital as the primary means to achieve rapid economic growth. In the presence of the aforementioned problems this study empirically examined the impact of selected macroeconomic variables (Exchange rate, Interest rate and Inflation) on capital inflows. The study in specific terms employs a vector error correction to estimate the demand and supply of capital inflow. In addition, a pairwise granger causality test was conducted to explore the causal link between the macroeconomic variables and capital inflow. Interestingly, it was observed from the causality test that there was neither bidirectional nor unidirectional causality between the two but rather an independent relationship. The findings from the vector error correction established there is no significant short-run relationship among the variables both from the demand and supply side but in the long run the relationship is significant. The results from VECM assert that the values of lagged of interest rate, exchange rate, inflation rate and other macroeconomic variables as an insignificant factors affecting the rate of capital inflow in Nigeria. Based on the outcome of the results it was therefore suggested that care should be taken when attracting capital inflow to Nigeria (either foreign direct investment or external debt) and it should be directed to more productive sectors of the economy. Particularly, these investments should be able to create jobs, develop local skilled labour and stimulate and transfer new technologies. The government should also provide incentives in order to encourage foreign investments into labour intensive and pro poor sectors of the economy.
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