Exchange Rate Volatility and Foreign Direct Investment in Selected West African Countries

dc.contributor.authorOnatunji, Olufemi
dc.date.accessioned2022-03-30T09:18:23Z
dc.date.available2022-03-30T09:18:23Z
dc.date.issued2021
dc.description.abstractThis paper empirically investigates the exchange rate volatility-FDI nexus in selected Economic Community of West African Sates (ECOWAS) countries using time series data from 1986-2017. Using Autoregressive Distributed Lag (ARDL) model and Toda-Yamamoto (1995) causality techniques, the effects of exchange rate volatility on FDI and causality relationship between the two are examined. The empirical results show that the estimated coefficient of nominal exchange rate volatility is negative in all the selected countries but significant only in Ghana, Sierra Leone, and Nigeria. Conversely, the effect of real exchange rate volatility is negatively significant as expected, in Nigeria, Togo, Sierra Leone, and Cote d’lvore. However, the effect is positive but statistically insignificant in Ghana and Gambia. Furthermore, the causality test results show unidirectional causality from exchange rate volatility to FDI in all selected countries except in Ghana when the nominal exchange rate is employed. On the other hand, when real exchange rate volatility is employed, there is evidence of bidirectional causality between the two variables only in Nigeria and Sierra Leone.en_US
dc.identifier.urihttp://dspace.run.edu.ng:8080/jspui/handle/123456789/2121
dc.language.isoenen_US
dc.publisherThe International Journal of Business and Finance Researchen_US
dc.subjectExchange rates volatilityen_US
dc.subjectForeign direct investmenten_US
dc.subjectAutoregressive distributed lag modelen_US
dc.subjectEconomic Community of West African Statesen_US
dc.titleExchange Rate Volatility and Foreign Direct Investment in Selected West African Countriesen_US
dc.typeArticleen_US
Files
Original bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
IJBFR-V15N1-2021-6.pdf
Size:
605.4 KB
Format:
Adobe Portable Document Format
Description:
License bundle
Now showing 1 - 1 of 1
Loading...
Thumbnail Image
Name:
license.txt
Size:
1.71 KB
Format:
Item-specific license agreed upon to submission
Description: