Macroeconomic determinants of domestic private investment in Nigeria: an empirical exploration

Authors

Louis N. Chete, Nigerian Institute for Social and Economic Research (NISER), Ibadan
Godwin Akpokodje, Nigerian Institute for Social and Economic Research (NISER), Ibadan

Publisher

Central Bank of Nigeria

Keywords

Private investment, Trade and exchange rate, Fiscal, Domestic interest rates, Public investment.

Abstract

Despite a decade of profound macroeconomic adjustments, the record of private investment recovery has been disappointing. This paper empirically investigates the determinants of private investment in Nigeria. The results reveal that a combination of internal disequilibria and external shocks account for the slow pace of private investment resurgence. Conclusively, the paper advocates the synchronization of monetary, fiscal, trade and exchange rate policies of government in a mutually reinforcing manner to facilitate the attainment of the objectives of price stability, higher rates of investment and growth.

Author Bio

• Chete and Akpokodje are Research Fellows at the Nigerian Institute of Social and Economic Research, Ibadan.

Publication Title

CBN Economic and Financial Review

Issue

4

Volume

35

Recommended Citation

Chete, L. N. & Akpokodje, G. (1997). Macroeconomic determinants of domestic private investment in Nigeria: an empirical exploration. CBN Economic and Financial Review, 35(1), 43-58.