Research shows significant negative effects of exchange rate volatility on foreign direct investment inflows in Nigeria, suggesting economic stability measures are needed.
Key Points
High exchange rate volatility negatively affects foreign direct investment inflows into Nigeria.
Analysis using the ARDL model revealed long-term impacts of inflation and interest rates on FDI.
Cointegration analysis indicates a significant relationship between currency fluctuations and investment stability.
The findings highlight the importance of stable exchange rates to attract international investors.