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

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 infrastruc...

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Main Authors: Md. Mahmudul Haque, Mohammad Ashraful Ferdous Chowdhury, Mohammad Hassan Shakil, Mansur Masih
Format: Article
Language:English
English
Published: Inderscience Enterprises Ltd. 2021
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Online Access:https://eprints.ums.edu.my/id/eprint/33589/1/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model.pdf
https://eprints.ums.edu.my/id/eprint/33589/2/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model%20_ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/33589/
https://www.inderscienceonline.com/doi/epdf/10.1504/AAJFA.2021.111795
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spelling my.ums.eprints.335892022-08-02T02:28:08Z https://eprints.ums.edu.my/id/eprint/33589/ Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model Md. Mahmudul Haque Mohammad Ashraful Ferdous Chowdhury Mohammad Hassan Shakil Mansur Masih HG4501-6051 Investment, capital formation, speculation 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. Inderscience Enterprises Ltd. 2021 Article PeerReviewed text en https://eprints.ums.edu.my/id/eprint/33589/1/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model.pdf text en https://eprints.ums.edu.my/id/eprint/33589/2/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model%20_ABSTRACT.pdf Md. Mahmudul Haque and Mohammad Ashraful Ferdous Chowdhury and Mohammad Hassan Shakil and Mansur Masih (2021) Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model. Afro-Asian Journal of Finance and Accounting, 11. pp. 20-34. ISSN 1751-6447 (P-ISSN) , 1751-6455 (E-ISSN) https://www.inderscienceonline.com/doi/epdf/10.1504/AAJFA.2021.111795
institution Universiti Malaysia Sabah
building UMS Library
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Sabah
content_source UMS Institutional Repository
url_provider http://eprints.ums.edu.my/
language English
English
topic HG4501-6051 Investment, capital formation, speculation
spellingShingle HG4501-6051 Investment, capital formation, speculation
Md. Mahmudul Haque
Mohammad Ashraful Ferdous Chowdhury
Mohammad Hassan Shakil
Mansur Masih
Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
description 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.
format Article
author Md. Mahmudul Haque
Mohammad Ashraful Ferdous Chowdhury
Mohammad Hassan Shakil
Mansur Masih
author_facet Md. Mahmudul Haque
Mohammad Ashraful Ferdous Chowdhury
Mohammad Hassan Shakil
Mansur Masih
author_sort Md. Mahmudul Haque
title Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
title_short Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
title_full Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
title_fullStr Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
title_full_unstemmed Infrastructure-FDI nexus in Nigeria: insights from nonlinear threshold regression model
title_sort infrastructure-fdi nexus in nigeria: insights from nonlinear threshold regression model
publisher Inderscience Enterprises Ltd.
publishDate 2021
url https://eprints.ums.edu.my/id/eprint/33589/1/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model.pdf
https://eprints.ums.edu.my/id/eprint/33589/2/Infrastructure-FDI%20nexus%20in%20Nigeria_%20insights%20from%20nonlinear%20threshold%20regression%20model%20_ABSTRACT.pdf
https://eprints.ums.edu.my/id/eprint/33589/
https://www.inderscienceonline.com/doi/epdf/10.1504/AAJFA.2021.111795
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