In recent times there has been growing concern about the rising but volatile rate of investment in Nigeria. This concern stems from the fact that investment play a dominant role in stimulating growth. The study buttress on the overview and empirical analysis into the determinants of investment in Nigeria.
In order to achieve the objectives hypothesis was stated with the purpose of achieving current and future stable upswing of investment by re-addressing problem of investment as highlighted in the statement of the problem.
The study used investment as the dependent variable and government expenditure, tariff , real interest rate and capital stock as the independent variable. In analyzing the data, economic model of multiple regression using ordinary least square (OLS) technique was employed. That t-test conducted indicates that government expenditure, tariff and real interest rate. Not statistically significant at 5 percent level. Normality test and heterosexuality test were employed as the second order test.
1.1 Background of the Study
The Nigerian economy has witnessed a slow pace of growth of less than 5 percent in the last two decades. Various reasons have been advanced to this development but the most apparent has been the poor investment climate in the economy and this has been attributed to the low available investable funds.
The stimulation of sustained economic growth requires a balance investment in physical and financial assets human and social capital as well as natural and environmental capital.
Nigeria has been classified as low savings and even lower investment economy (Ajakaiye 2002) one of the principal objective of the Nigerian government under the 1999 democratic dispensation is fostering of sustained economic growth. Over the years the government has been in the driver’s seat in growth the economy. But lessons of experience have show that government cannot regulate the economy effectively. A typical example has been the shift under the National Economic Empowerment and Development Strategy (NEEDS) which has…