خلاصة:
This article investigates the dynamic effects of foreign direct investment uncertainty on financial development in Nigeria and the interacting role of financial inclusion and economic growth. We used the annual time series data of Nigeria covering the period 1970-2018. Through advanced econometric techniques, we first substantiated stationarity level and co-integration among the scrutinized variables, which is genuinely done for reliable findings. Following that, we applied Gregory and Hansen (1996) co-integration test, Non-linear ARDL as the elasticity estimator, and Diks and Panchenko (2006) causality test for the analysis. The Empirical evidence postulates the asymmetric nature of foreign direct investment uncertainty to financial development. We also found a non-linear uni-directional causality running from economic growth to financial development, foreign direct investment uncertainty to financial development, and financial inclusion to financial development. In the end, the authors proposed the needed policy recommendations to strengthen the Nigerian financial sector.
ملخص الجهاز:
Moreover, the fourth category of scholars comprising Demetriades and Hussein (1996), Akinboade (1998), and Greenwood and Smith (1997) argued that the causal relationship between economic growth and financial development is bidirectional.
Having highlighted that, this paper strives to relate to this increasing line of thought by empirically examining the effect of foreign direct investment uncertainty on financial development in Nigeria and the interactive role of financial inclusion and economic growth.
Moreover, the study considers the asymmetric relationship of foreign direct investment inflow uncertainty and the interaction of financial inclusion and economic growth, knowing clearly that this economy is increasingly integrating with other financial sectors across the globe and couples with the challenges of uncertainty in the capital flow.
(2018) were among the researchers that appreciate the fact that developing economies could benefit from increased investments, decreased cost of capital, more exceptional living standard, and sustainable growth resulting from financial globalization.
Diks-Panchenko Nonparametric Granger Causality Test {مراجعه شود به فایل جدول الحاقی} The above result of asymmetric causality reveals the presence of non-linear uni-directional causality between economic growth running and financial development.
BDS Test for (View the image of this page) TSLINE This research analyzed the asymmetric role of financial globalization uncertainty, the interacting role of financial inclusion, and economic growth in the Nigerian economy.
The impact of economic growth, oil price, and financial globalization uncertainty on financial development: Evidence from selected leading african countries.