Impact of Security Expenditure on Foreign Direct Investment in Nigeria
International Journal of Accounting, Finance and Risk Management
Volume 1, Issue 1, November 2016, Pages: 33-38
Received: Aug. 20, 2016; Accepted: Nov. 2, 2016; Published: Dec. 9, 2016
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Adeyeye Patrick Olufemi, Department of Banking and Finance, Rufus Giwa Polytechnic, Owo, Nigeria
Ayodele Sunday Owojori, Department of Banking and Finance, Rufus Giwa Polytechnic, Owo, Nigeria
Akinuli Bankole Olu, Department of Banking and Finance, Rufus Giwa Polytechnic, Owo, Nigeria
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This study investigates the relationship between Expenditure on Security and Foreign Direct Investment in Nigeria using secondary data spanned through 1985 to 2012. Preliminary unit root tests were conducted using the Philip-Perron approach. Co-integration and Error Correction Mechanism (ECM) was employed to examine the nexus between Expenditure on Security and Foreign Direct Investment. The study found that internal security expenditure and Inflation maintained negative long run relationship with index of Foreign Direct Investment while defense expenditure exhibited long run positive relationship with the dependent variable. Consequently, it is recommended that an investment friendly environment capable of attracting Foreign Direct Investment should be of priority to the federal government. Likewise, serious and tight border strategic management is direly needed now as Nigeria borders have been porous and weak to the extent that ammunitions and other weapons freely fly across our borders unchecked. If these are allowed, a higher inflow of direct investment into Nigeria is imminent.
Defence, Internal Security, Insurgence, Foreign Direct Investment
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Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu, Impact of Security Expenditure on Foreign Direct Investment in Nigeria, International Journal of Accounting, Finance and Risk Management. Vol. 1, No. 1, 2016, pp. 33-38. doi: 10.11648/j.ijafrm.20160101.15
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This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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