No abstract

Several studies have analyzed the movement of foreign direct investment in Nigeria using linear approach. In contrast with all existing studies in Nigeria, this paper runs several non linear FDI equations where the main determinants of FDI are determined using Markov-Regime Switching Model (MSMs). The approach enables us to observe structural changes, where exist, in FDI equations through time. Asides, where FDI regression equation is truly nonlinear, MSMs fit data better than the linear models. The paper adopts maximum likelihood methodology of Markov-Regime Model (MSM) to identify possible structural changes in level and/or trends and possible changes in parameters of independent variables through the transition probabilities. The results show that FDI process in Nigeria is governed by two different regimes and a shift from one regime to another regime depends on transition probabilities. The results show that the main determinants of FDI are GDP growth, macro instability, financial development, exchange rate, inflation and discount rate. This implies liberalization that stems inflation and enhance the value of domestic currency will attract more FDI into the country.

The study examined the determinants of financial inclusion in Ondo State, Nigeria, and investigated its impact on poverty in the state. The study used a survey method to obtain primary data by administering questionnaires on 450 adult individuals aged 18 years and above in the 18 local government areas of Ondo State. A multi-stage sampling procedure was used to identify the units of analysis individual. The results from logistic regression showed that the main determinants of financial inclusion in the state were age, genders, financial discipline, religion, income, location, trust, alternatives, ICT inclination, documentation, household size, tertiary education, married, civil servant, self-employed, distance2 and distance3. Asides, financial inclusion was found to have a significant effect on poverty in the state. The article recommends increased financial inclusion in Ondo state to enhance the welfare of the people.

This paper examines the asymmetric impact of oil prices on remittance inflows in Nigeria based on annual data over 1981-2018. The study employs the nonlinear autoregressive distributed lag approach, which allows testing the short-and long-run asymmetric response of remittances inflows to positive and negative innovations in oil prices. The results confirm a long-run relationship between remittance inflows, exchange rate, misery index, gross domestic product per capita, and oil prices. The results show that changes in oil price have an asymmetric effect on remittance inflows in the short run but not in the long run. Moreover, exchange rate appreciation and depreciation have different impact on remittances inflows in both the short and long run. Exchange rate depreciation hurts remittance inflows. GDP per capita harms remittances inflows not only in the short run but also in the long run. Nigerian authorities implement necessary measures to enhance the efficiency of migration process and ensure appropriate exchange rate value.

The paper examines the impact of microfinance on poverty alleviation in Ondo State, Nigeria. The paper is based on a survey of 240 beneficiaries of microcredit loans in Ondo State. The results of the analysis show that most beneficiaries of micro credit loans are educated youth between the age brackets of 18 and 40 years. Many of the beneficiaries utilized their loans to procure durable equipment needed in their small scale enterprises. The results show that loan empowerment has a significant positive effect on beneficiaries’ welfare. Access to credit allowed the beneficiaries take advantage of economic opportunities by providing a fundamental basis for planning and expanding business activities.