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Financial Development and FDI in Nigeria: Investigating the Moderating Effect of Institutional Quality
Foreign Direct Investment is critical for Nigeria’s economic growth, yet inflows remain below potential. What role do financial markets and institutions play in attracting FDI?
This study by Emmanuel T. Ideba, Anthony Orji, Oluchi Okoro, Onyinye I. Anthony-Orji, and Juliana Ngozi Obiorah examines the relationship between financial development and FDI inflows in Nigeria from 1996-2023. Using World Bank data and FMOLS estimation techniques, the authors test whether institutional quality, specifically Regulatory Quality, moderates this relationship.
