To What Extent Does Financial Panic Associated with Insecurity affect Investment in Nigeria?

AFRAG036

To What Extent Does Financial Panic Associated with Insecurity affect Investment in Nigeria?

Atseye, Fidelis Anake Akeh, Monica Ukongim Aliyu Rilwanu Saad

Department of Banking and Finance Faculty of Management Sciences University of Calabar, Calabar, Nigeria Corresponding Author: anakefidel@yahoo.co.uk and anakefidel@unical.edu.ng

Abstract

The paper sought empirically to answer the question, whether financial panic associated with insecurity challenges significantly affected the value of domestic investment in Nigeria during the period 2010-2020. Specifically, the paper examined the effect insecurity financial panic, interest rate, exchange rate and inflation rate have on investment in Nigeria. Data were extracted from the World Bank and Central Bank of Nigeria (CBN) statistical bulletins. Using terrorism index as proxy for insecurity financial panic, the OLS multiple regression model captured domestic investment as a function of insecurity financial panic and other macroeconomic variables. Results indicated a significant effect of financial panic and the selected macroeconomic variables on domestic investment in Nigeria. Based on these results, the study recommended that government should brace up to meet the insecurity challenges with the view to stemming the tide of insecurity financial panic and its attendant effect on investment.

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