Promotion of Infrastructure, Financial Growth Will Attract FDI –Study

Promotion of Infrastructure, Financial Growth Will Attract FDI –Study

 
Promotion of Infrastructure, Financial Growth Will Attract FDI –Study

‘Interactive Effects of Exchange Rate Volatility and Foreign Capital Inflows on Economic Growth in Nigeria’

Government, in its efforts to diversify the economy for future growth, should promote infrastructure and adequate financial development that will attract Foreign Direct Investment (FDI) to agriculture and agro allied industries and diversify remittances from consumption into investment, Dr. O. Ola-David, Olusuyi Ajayi, T. O Akinbobola and Samuel Okposin have suggested in their study.

The researchers stated in their work titled, ‘Interactive Effects of Exchange Rate Volatility and Foreign Capital Inflows on Economic Growth in Nigeria’, that various documented evidences had attested to the vital roles of foreign capital inflow in bridging the savings investment gaps in the developing countries, in order to bring about the so much desired development.

While acknowledging that sourcing for the much desired foreign capital could be impeded by Exchange Rate Volatility (EXRV), they observed that the negative effect of EXRV could be mitigated by the level of financial development prevalent in the country.

For more on the study, click here