DETERMINANTS OF INVESTMENT IN NIGERIA (1985 - 2011)

ABSTRACT

In recent times, there has been growing concern about the rising but volatile rate of investments in Nigeria. Thus concern stem from the fact that investment plays a dominant role in stimulating growth. The study buttress on the overview and empirical analyses into the determinant of investment in Nigeria in other to achieve the objective hypotheses which was stated with the purpose of achieving current and future stable and upswing of investment by readdressing problems of investment, as highlighted in the statement of problem. The study used investment as dependent variable and interest rate, inflation, foreign direct investment, degree of trade openness, gross domestic product, and money supply as independent variable. In analyzing the data, economic model of multiple regression using ordinary least square OLS techniques was employed. t test was conducted to evaluate the significant of independent variables in the model not statistically significant at 5 percent level. Auto correlation and heteroscedaticity test were employed as the second order test.