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“The Exchange Rate and Private Investment in Nigeria

Authors: OYEDELE Ovikuomagbe

Publication Type: Journal article

Journal: European Journal Of Social Sciences

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Abstract

This study measures the impact of the exchange rate on the level of private investment in Nigeria from 1980 to 2010 using data from World Development Indicators 2012. It establishes a negative relationship between the exchange rate and private investment and attributes the low level of private investment since 1980 to the devaluation trend which has a negative impact on investment as much of investment trade has been mostly on the importation of capital goods.

The study attempts to explain the relationship between private investment and the exchange rate as well as other supporting, important variables such as the real GDP per capita, the inflation rate and the public investment rate. The uncertainty in exchange rate movements, the continuous depreciation of the naira in real terms, the poor level of infrastructural development and the low level of exchange rate related risk protection have not improved the level of domestic as well as foreign private investment flow which happens to dominate total private investment in the country.

The poor growth of real GDP per capita (low effective demand level) has only induced a poor private investment growth level. The method of analysis includes a cointegration test and an error correction model.

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OYEDELE,O. . (0000). “The Exchange Rate and Private Investment in Nigeria, 40 (), 638-638.

OYEDELE,O. . "“The Exchange Rate and Private Investment in Nigeria" 40, no (), (0000): 638-638.

OYEDELE,O. and . (0000). “The Exchange Rate and Private Investment in Nigeria, 40 (), pp638-638.

OYEDELEO, . “The Exchange Rate and Private Investment in Nigeria. 0000, 40 ():638-638.

OYEDELE,Ovikuomagbe , . "“The Exchange Rate and Private Investment in Nigeria", 40 . (0000) : 638-638.

O.Ovikuomagbe , "“The Exchange Rate and Private Investment in Nigeria" vol.40, no., pp. 638-638, 0000.

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