Determinants Of Investment In The Nigerian Economy: An Empirical Approach (1981-2009).

ABSTRACT 

This study centred on the Determinants of Investment in the Nigerian Economy: An Empirical Approach, 1981 – 2009. In attempt to achieve the objective, hypotheses were formulated and data for the study collected from the CBN statistical bulletin, annual report and statements of accounts, covering the period of 1981-2009. The data were analyzed using E-views econometric software under the ordinary least square (OLS) regression analysis. The study revealed that there is a significant relationship between the selected macroeconomic variables and level of investment in Nigeria. Also demonstrated by the study is the fact that only government expenditure has a significant influence on investment in Nigeria thus, leading the study to conclude that investment in Nigeria is still at a very low level and should be encouraged to impact positively on the economy in general. Based on the findings, it is recommended among others measures that government should review its policies on investments and pay more attention to its determinants i.e. inflation rate, exchange rate, government expenditure and interest rate.  They are essential ingredients for boosting investments in Nigeria. 

Key words: Investments, Determinants, Economy, Theories.