Infrastructure-FDI nexus in Nigeria: Insights from nonlinear threshold regression model

Md Mahmudul Haque; Mohammad Ashraful Ferdous Chowdhury; Mohammad Hassan Shakil; Mansur Masih

doi:10.1504/AAJFA.2021.111795

Infrastructure-FDI nexus in Nigeria: Insights from nonlinear threshold regression model

Md Mahmudul Haque
, Mohammad Ashraful Ferdous Chowdhury
, Mohammad Hassan Shakil
, Mansur Masih^*

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

2 Scopus citations

Abstract

Infrastructural development of the host country is one of the major determinants of attracting FDI. However, the nonlinear threshold relationship between the infrastructural development and FDI inflow is yet to be explored. The objective of this research is to find the threshold effect of infrastructure on FDI in Nigeria. Using Hansen's (2000) threshold regression over the period 1972-2015, the study found that the relationship between infrastructure development and FDI is nonlinear. Furthermore, the relationship between infrastructure and FDI is positive in both regimes; however, the marginal positive impact of infrastructural development in attracting FDI is more evident after the threshold level. The findings provide support to the regulators and policy makers to improve infrastructural development for attracting more FDI in the economy which can foster economic growth.

Original language	English
Pages (from-to)	20-34
Number of pages	15
Journal	Afro-Asian Journal of Finance and Accounting
Volume	11
Issue number	1
DOIs	https://doi.org/10.1504/AAJFA.2021.111795
State	Published - 2021
Externally published	Yes

Bibliographical note

Publisher Copyright:
Copyright © 2021 Inderscience Enterprises Ltd.

Keywords

FDI
Foreign direct investment
Infrastructural development
Nigeria
Threshold regression

ASJC Scopus subject areas

Accounting
Finance

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

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10.1504/AAJFA.2021.111795

Cite this

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title = "Infrastructure-FDI nexus in Nigeria: Insights from nonlinear threshold regression model",

abstract = "Infrastructural development of the host country is one of the major determinants of attracting FDI. However, the nonlinear threshold relationship between the infrastructural development and FDI inflow is yet to be explored. The objective of this research is to find the threshold effect of infrastructure on FDI in Nigeria. Using Hansen's (2000) threshold regression over the period 1972-2015, the study found that the relationship between infrastructure development and FDI is nonlinear. Furthermore, the relationship between infrastructure and FDI is positive in both regimes; however, the marginal positive impact of infrastructural development in attracting FDI is more evident after the threshold level. The findings provide support to the regulators and policy makers to improve infrastructural development for attracting more FDI in the economy which can foster economic growth.",

keywords = "FDI, Foreign direct investment, Infrastructural development, Nigeria, Threshold regression",

author = "\{Mahmudul Haque\}, Md and \{Ferdous Chowdhury\}, \{Mohammad Ashraful\} and Shakil, \{Mohammad Hassan\} and Mansur Masih",

note = "Publisher Copyright: Copyright {\textcopyright} 2021 Inderscience Enterprises Ltd.",

year = "2021",

doi = "10.1504/AAJFA.2021.111795",

language = "English",

volume = "11",

pages = "20--34",

journal = "Afro-Asian Journal of Finance and Accounting",

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publisher = "Inderscience Enterprises Ltd",

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}

TY - JOUR

T1 - Infrastructure-FDI nexus in Nigeria

T2 - Insights from nonlinear threshold regression model

AU - Mahmudul Haque, Md

AU - Ferdous Chowdhury, Mohammad Ashraful

AU - Shakil, Mohammad Hassan

AU - Masih, Mansur

PY - 2021

Y1 - 2021

N2 - Infrastructural development of the host country is one of the major determinants of attracting FDI. However, the nonlinear threshold relationship between the infrastructural development and FDI inflow is yet to be explored. The objective of this research is to find the threshold effect of infrastructure on FDI in Nigeria. Using Hansen's (2000) threshold regression over the period 1972-2015, the study found that the relationship between infrastructure development and FDI is nonlinear. Furthermore, the relationship between infrastructure and FDI is positive in both regimes; however, the marginal positive impact of infrastructural development in attracting FDI is more evident after the threshold level. The findings provide support to the regulators and policy makers to improve infrastructural development for attracting more FDI in the economy which can foster economic growth.

AB - Infrastructural development of the host country is one of the major determinants of attracting FDI. However, the nonlinear threshold relationship between the infrastructural development and FDI inflow is yet to be explored. The objective of this research is to find the threshold effect of infrastructure on FDI in Nigeria. Using Hansen's (2000) threshold regression over the period 1972-2015, the study found that the relationship between infrastructure development and FDI is nonlinear. Furthermore, the relationship between infrastructure and FDI is positive in both regimes; however, the marginal positive impact of infrastructural development in attracting FDI is more evident after the threshold level. The findings provide support to the regulators and policy makers to improve infrastructural development for attracting more FDI in the economy which can foster economic growth.

KW - FDI

KW - Foreign direct investment

KW - Infrastructural development

KW - Nigeria

KW - Threshold regression

UR - https://www.scopus.com/pages/publications/85099523084

U2 - 10.1504/AAJFA.2021.111795

DO - 10.1504/AAJFA.2021.111795

M3 - Article

AN - SCOPUS:85099523084

SN - 1751-6447

VL - 11

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JO - Afro-Asian Journal of Finance and Accounting

JF - Afro-Asian Journal of Finance and Accounting

IS - 1

ER -

Infrastructure-FDI nexus in Nigeria: Insights from nonlinear threshold regression model

Abstract

Bibliographical note

Keywords

ASJC Scopus subject areas

UN SDGs

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