THE DETERMINANTS OF INVESTMENT IN NIGERIA

ABSTRACT

 The purpose of this study is to examine the determinants of investment in the  Nigeria economy making use of time series data for the period 1970-2003. The study employed the Ordinary Least Square (OLS) and the Cochrane Orcutt technique of estimation. The main conclusion which emerged from the analysis is that increase in investment will lead to an increase economic growth. The policy implication of this finding calls for the harmonization of interest rate policy, exchange rate, financial savings, inflation rate, and maintaining a stable macroeconomic environment and financial reforms to stimulate investment and capital accumulation. Also good governance is also important for sustainable economic growth.

TABLE OF CONTENTS

 TITLE PAGE…………………………………………………………i

 CERTIFICATION……………………………………………………ii

 DEDICATION…………………………………………………………iii

 ACKNOWLEDGE……………………………………………...……iv

 TABLE OF CONTENTS…………………………………………….v

 ABSTRACT………………………………………………………….vi

CHAPTER ONE   INTRODUCTION………………………………1

Background of the study…………………………1

Statement of the problem…………………………3

Objectives of the study……………………………5

Justification of the study…………………………6

Research hypothesis……………………………7

Scope of the study………………………………7

Definition of terms………………………...………8

Plan of the study…………………………………9

CHAPTER TWO   LITERATURE REVIEW AND THEORETICAL FRAMEWORK.10

Introduction………...…………...…………………10

Concept of Investment………………...…………10

Theoretical Framework..…………………………11

2.3.1    Theories of Investment……………………………………11

Literature review…………...………………………13

2.4.1    Survey of Empirical studies………………………………13

 2.4.2    Sectoral distribution of Investment by banks……. ……16

 2.4.3    Geographical distribution of investment by banks….…18

 2.4.4    Impact of macroeconomic variables on Investment.…19

 2.5       Conclusion…………………………………………………21

 CHAPTER THREE                RESEARCH METHODOLOGY…………….22

 3.1        Introduction…………………………………………………………….22

 3.2          Model Specification….………………………………………...……22

 3.3          Technique of Data Analysis...……………………………………….25

 3.4          Measurement of specific variables….………………………………27

Sources of data…………………………………………………28

CHAPTER FOUR MODEL ESTIMATION AND EVALUATION………………29

Model estimation……………………………………………….29

4.2          Presentation of Data………......…………………………...………29

 4.3          Data Analysis and Result……………………………………………30

 4.4          Discussion of Result……...…………………………………………31

 CHAPTER FIVE   SUMMARY, RECOMMENDATION AND CONCLUSION.....36

Summary of Findings.…………………………………..…….36

5.2          Recommendations……………………………………………………37

 5.3          Conclusion……………………………………………………………39

 5.4          Limitation of the study………………………………………………39

 5.5          Recommendations for further Study………………………………40

 APPENDIX………………………………………………………………………41

 BIBLIOGRAPHY…………………………………………………………………46