Foreign capital and misery index in Nigeria
DOI:
https://doi.org/10.64171/JSRD.4.3.10-15Keywords:
Capital inflows, Diaspora, Misery index, Multilateral, RemittanceAbstract
The study examined foreign capital inflows and misery index in Nigeria from 1981 to 2022. The objectives of the study are to; examine the impact of foreign direct investment inflow (FDI), foreign portfolio investment (FPI), diaspora remittance (DRM) and multilateral debt (MLD) on, misery index (MSI) in Nigeria. Secondary data were sourced from World Development Indicators and Central Bank of Nigeria Statistical Bulletin and the technique of Auto Regressive Distributed Lag modelling was used. The results showed that, while FDI, FPI and DRM reduces MSI, MLD increases MSI in Nigeria during the period of study. The policy implication is that foreign capital inflows to some extent attracted appreciable level of economic prosperity in Nigeria. Based on the findings it was recommended that, government should encourage friendly investment condition and trade policies to boost inflow of capital such as foreign portfolio investment into Nigeria. Also, the study recommends that fiscal planning should take an account of the inflow of remittances when curbing unemployment and inflation rates.
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