ABSTRACT
Monetary policy is believed to have huge benefits on the economy especially if it well for formulated and implemented. This study was aimed at investigating the impact of monetary policy on foreign direct investment in Nigeria within the period 1970-2016. The study used secondary data on foreign direct investment and some key of monetary variable like broad money supply, interest rate and monetary policy rate. An econometric approach of ordinary least square was used to empirically analyze the data.
The finding reveals that exchange rate and gross domestic product impacted positively and significantly on foreign direct investment while monetary policy rate and broad money supply had an inverse but significant effect on foreign direct investment in Nigeria. The model has a high explanatory power of 79.72% and a significant F-statistic which indicated that the model has a goodfit and be relied upon.
Therefore, the study recommends the identification of the maximum level of broad money supply that is beneficial to the economy in the area of an inflow of foreign direct investment as well as the utilization of the huge market size to the advantage of the deferent sector of Nigerian economy.
TABLE OF CONTENT
Certificate
Dedication
Acknowledgement
Abstract
Table of content
CHAPTER ONE
INTRODUCTION
- Background to the Study
- Statements of the problem
- Objectives of the study
- Research hypotheses
- Significance of the study
- Scope of the study
- Organisation of the study
- Definition of terms
CHAPTER TWO
LITERATURE REVIEW AND THEORETICAL FRAMEWORK
2.1 Concept of monetary policy
2.2 Objectives of monetary policy
2.3 Instrument of monetary policy
2.3.1 Open Market Operations
2.3.2 Cash reserve requirement
2.3.3 Discount window operations
2.3.4 Interest Rate
2.3.5 Moral suasion
2.3.6 Exchange rate
2.3.7 Direct credit control
2.3.8 Lending by Central Bank
2.3.9 Prudential guidelines
2.4 Concept of foreign direct investment
2.4.1 Gains of foreign direct investment
2.5 Empirical literature on monetary policies and foreign direct investment
2.6 Theoretical framework
2.6.1 Classical theory
2.6.2 Keynesian theory
2.6.3 Monetarist theory
2.6.4 Flow theory of capital movement
CHAPTER THREE
RESEARCH METHODOLOY
3.1 Research design
3.2 Model specification
3.3 Sources of data
3.4 Methods of data collection
3.5 Techniques of data analysis
3.6 Limitation of the study
CHAPTER FOUR
RESULT PRSENTATION, ANALYSIS AND DICUSSION OF FINDINGS
4.1 Result Presentation
4.2 Analysis of Data
4.2.1 A priori Expectation
4.2.2 Statistical Criteria
4.2.3 Econometric Criteria
4.3 Test of Hypotheses
4.4 Discussion of Findings
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Major Findings
5.2 Conclusion
5.3 Policy Recommendation
References
Apppendix
