Nigerian Economic Society
Hi Guest,
Home | Paper Submission | Signup |
      
Providing intellectual leadership in economic management in Nigeria
FOREIGN PRIVATE INVESTMENT AND STOCK MARKET VOLATILITY IN NIGERIA

FOREIGN PRIVATE INVESTMENT AND STOCK MARKET VOLATILITY IN NIGERIA

 

Abstract: This study investigates the dynamic relationship between Foreign Private Investment (FPRI) and Stock Market volatility in Nigeria, using quarterly time series data from 1985 to 2013. FPRI was decomposed into Foreign Portfolio Investment (FPI) and Foreign Direct Investment (FDI). After the preliminary stationarity test of the data series, the Granger causality test procedure was employed, and finally a GARCH process was used to determine the magnitude of impact of foreign capital flows on stock market volatility in Nigeria. The result from the Granger causality (dynamics) analysis reveals a unidirectional relationship running from FPI to stock market volatility, while FDI is found to have a feedback relationship with stock market volatility in Nigeria. The GARCH result reveals that FPI contributes to stock market volatility, while FDI helps to promote stability in the capital market. Against the backdrop of these findings, it is recommended that policy measures to stimulate and stabilize foreign private investment, particularly FPI be put in place in order to ensure the stability and growth of the stock market. Importantly, sound institutional and regulatory mechanisms, as well as stable macroeconomic policy environment are imperative to engendering market resilience during shocks, and the repositioning of the financial market as a pivot for domestic investment and rapid economic growth.

Price: N500.00 | Add to cart
 

 

 

Login

Forget password? | Signup for Free!
Note: You must signup your email and create a password before you can register as an NES member
 

Latest News

NES-63RD-ANNUAL-CONFERENCE-2022

Conference virtual link: https://us02web.zoom.us/j/83983249180?pwd=aXFkRGpoMFFoN1lpcGlqTUFGdUFsUT0...read more


2022 ANNUAL CONFERENCE POSTER

Kano State, the commercial city of Northern Nigeria will host NES 63rd Annual Conference 2022. The c...read more


Nigerian Economic Society 63RD ANNUAL CONFERENCE 2022

The Nigerian Economic Society wishes to inform the general public on her forthcoming Annual Conferen...read more


63rd ANNUAL CONFERENCE ANNOUNCEMENT: CALL FOR ABSTRACTS

63rd ANNUAL CONFERENCE ANNOUNCEMENT 26 - 30 September 2022 Venue: Kano, Kano State, Nigeria ...read more


NEW EXECUTIVE COUNCIL OF THE NIGERIAN ECONOMIC SOCIETY

At the end of the Annual General Meeting (AGM) during the 62nd Annual Conference of the Society held...read more


E-Mail Subscription

VoguePayVisaMasterCard