Overview

This study examines the effects of economic and political uncertainties on FDI inflows to Nigeria at the aggregated and across sectors (agricultural, manufacturing, trade and business, and mining and quarrying sectors), covering the period between 1970 and 2010. An Error Correction Model (ECM) that measures the cost of capital, inflation and exchange rate variability, political instability and investors' confidence was employed to determine the short- and long-run effects of economic and political uncertainty on FDI inflows. The analytical result of the study confirms the negative effect of economic and political uncertainties on FDI inflow to Nigeria both at the aggregated and across sectors in varying degrees.

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