International records / OpenAlex research

Financial Openness and Foreign Direct Investment in Nigeria: New Evidence

The study provides new evidence on the effect of financial openness on FDI inflows in Nigeria using data that span the period from 1981 to 2016. The FMOLS estimator is employed. The study finds that financial openness is negatively and significantly related to FDI inflows, but its interaction with political regime is positive and significant. This suggests that the effect of liberalization of capital accounts on FDI inflows is regime-dependent: the more democratic the government is, the more FDI the country attracts. It also finds that trade openness, expansion of domestic market, infrastructu…