Domestic investment is a significant component of economic activities affecting Nigerian economy for decades. Sequel to this, this paper examines the effect of Foreign Direct Investment (FDI), exchange rate and energy infrastructure on domestic investment in Nigeria. Time series data obtained from Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicator were employed using Autoregressive Distributive Lag (ARDL) Model. Empirical findings show that FDI has positive and significant effect on domestic investment while exchange rate and energy infrastructure have a positive effect on domestic investment but non significant. The policy implications of this finding is that government should adopt more stringent supervision on exchange rate, and policy to regulate execution of energy infrastructure project; and more funds needed to emancipate energy infrastructure in order to obtain desired level of domestic investment in Nigeria.
This research examined the effect of market liquidity, inflation, and exchange rates on stock return in Nigerian Stock Exchange market. The researchers used ex-post facto design and employed secondary data subjected to Auto-regressive Distributive Lag (ARDL) bound test method of analysis within the period of twenty-one years. Findings reveal that in the short run, stock turnover, trading volume, exchange, and inflation rates have affected stock return positively and significantly. In the long run, market turnover has a positive effect. However, inflation and exchange rates have affected stock return negatively and significantly. Then, trading volume has a negative but insignificant effect on stock return, which is all at 5% level of significance. The researchers conclude that market liquidity, exchange, and inflation rates affect stock return. Therefore, the researchers recommend demutualization and transparent structures and adaptive method stabilization in exchange rate policies to increase stock market patronage, minimize transaction costs, and mitigate the market uncertainties.
The study investigates the joint market efficiency hypothesis of the OPEC countries by obtaining monthly stock price data from seven OPEC countries from January, 2005 to April, 2016. The study confirms the risk-return tradeoff in the OPEC stock markets. While most relationships are positive only a pair of country shows strong negative association Results of both parametric and nonparametric tests indicate that all OPEC members’ monthly stock return, except Qatar, are not weak-efficient. This implies that not all OPEC stock markets are efficient. Meanwhile, the study finds that current monthly stock return of one country member can be predicted using the historical monthly price movement of another OPEC member. As a whole, the monthly stock price of OPEC countries are not jointly weak efficient. Recommendations were offered based on these important discoveries.
The nexus between development of stock market and the performance of economic activities have been a critical issue around the globe. The issue as to whether a well-developed stock market influences the performance of economic activities and the relevant of developmental policy strategies have been a concern for the developing economies especially the West Africa economies. Literatures have shown that most of the West Africa economies were faced with sharp swings and wide fluctuations in the stock market indices, which had negative effect on the performance of economic activities of these economies. This study examined the effect of stock market development on the economic performance among West Africa economies. The study employed secondary data subjected to panel regression method of analysis within the period of seven years across selected West-Africa countries. Findings revealed that stock market development indicators; ratio of market capitalization to gross domestic product, All Share Index, and Stock Turnover have positive effect on economic performance while corruption perception index have negative effect on economic performance, all at 5% level of significance. The study concludes that stock market development indicators and corruption index affect economic performance in West Africa. Therefore, the study recommends that the stock market regulatory authorities should initiate strategic policies that would boost market liquidity and encourage easy access of companies to the market and also be more
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