Impact of Security Expenditure on Foreign Direct Investment in Nigeria

Adeyeye Patrick Olufemi; Ayodele Sunday Owojori; Akinuli Bankole Olu

doi:doi:10.11648/j.ijafrm.20160101.15

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Impact of Security Expenditure on Foreign Direct Investment in Nigeria

Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu

Published in International Journal of Accounting, Finance and Risk Management (Volume 1, Issue 1)

Received: 20 August 2016 Accepted: 2 November 2016 Published: 9 December 2016

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Abstract

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.

Published in	International Journal of Accounting, Finance and Risk Management (Volume 1, Issue 1)
DOI	10.11648/j.ijafrm.20160101.15
Page(s)	33-38
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Defence, Internal Security, Insurgence, Foreign Direct Investment

References

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[6]	Azazi (2011): Responding to the Emerging of Trends of Terrorism in Nigeria, 5^th Policing Executive Forum.
[7]	Bandyopadhyay, S., Sandler, T., & Younas, J. (2011). Foreign Direct Investment, Aid, and Terrorism: An Analysis of Developing Countries. Federal Reserve Bank of St. Louis Working Papers
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[12]	Enders, W., Sachsida A., & Sandler, T. (2006). The Impact of Transnational Terrorism on U.S. Foreign Direct Investment. Political Research Quarterly 59, 517-531: in Alomar, M and EL-Sakka, M.I.T., (2011), “The Impact of Terrorism on the FDI Inflows to Less Developed Countries: A Panel Study”: European Journal of Economics, Finance and Administrative Sciences 28, 1450–2275.
[13]	Global Peace Index (GPI, 2012) Global Peace Ranking Institute for Economics and Peace, Retrieved from Wikipedia, the Free Encyclopedia.
[14]	Hazen, Y.M. and Horner, J (2007): Small Arms, Armed Violence, and Insecurity in Nigeria. The Niger Delta in Perspective, Switzerland: Small Arms Survey.
[15]	Igbuzor, O. (2011): Peace and Security Education. A Critical Factor for Sustainable Peace and National Development, International Journal of Peace and Development Studies Vol. 2(1), 1-7, January.
[16]	Levine, R. and Zervos, S. J. (2006) What have We Learned about Growth from Cross-Country Regression? American Economic Review, 83.
[17]	Nigerian Economic Fact Sheet, (2011). Available at http://photos.state.gov/libraries/nigeria/231771/Public/December-EconomicFactSheet.pdf.
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[21]	Obadan, V. A. (1995): An Overview of Foreign Direct Investment in Nigeria 1960-1995. Occasional Paper, No. 11, Research Development, Central Bank of Nigeria.
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APA Style

Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu. (2016). Impact of Security Expenditure on Foreign Direct Investment in Nigeria. International Journal of Accounting, Finance and Risk Management, 1(1), 33-38. https://doi.org/10.11648/j.ijafrm.20160101.15

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ACS Style

Adeyeye Patrick Olufemi; Ayodele Sunday Owojori; Akinuli Bankole Olu. Impact of Security Expenditure on Foreign Direct Investment in Nigeria. Int. J. Account. Finance Risk Manag. 2016, 1(1), 33-38. doi: 10.11648/j.ijafrm.20160101.15

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AMA Style

Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu. Impact of Security Expenditure on Foreign Direct Investment in Nigeria. Int J Account Finance Risk Manag. 2016;1(1):33-38. doi: 10.11648/j.ijafrm.20160101.15

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@article{10.11648/j.ijafrm.20160101.15,
  author = {Adeyeye Patrick Olufemi and Ayodele Sunday Owojori and Akinuli Bankole Olu},
  title = {Impact of Security Expenditure on Foreign Direct Investment in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {1},
  number = {1},
  pages = {33-38},
  doi = {10.11648/j.ijafrm.20160101.15},
  url = {https://doi.org/10.11648/j.ijafrm.20160101.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20160101.15},
  abstract = {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.},
 year = {2016}
}

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TY  - JOUR
T1  - Impact of Security Expenditure on Foreign Direct Investment in Nigeria
AU  - Adeyeye Patrick Olufemi
AU  - Ayodele Sunday Owojori
AU  - Akinuli Bankole Olu
Y1  - 2016/12/09
PY  - 2016
N1  - https://doi.org/10.11648/j.ijafrm.20160101.15
DO  - 10.11648/j.ijafrm.20160101.15
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 33
EP  - 38
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20160101.15
AB  - 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.
VL  - 1
IS  - 1
ER  -

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Author Information

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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Plain Text BibTeX RIS

APA Style

Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu. (2016). Impact of Security Expenditure on Foreign Direct Investment in Nigeria. International Journal of Accounting, Finance and Risk Management, 1(1), 33-38. https://doi.org/10.11648/j.ijafrm.20160101.15

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ACS Style

Adeyeye Patrick Olufemi; Ayodele Sunday Owojori; Akinuli Bankole Olu. Impact of Security Expenditure on Foreign Direct Investment in Nigeria. Int. J. Account. Finance Risk Manag. 2016, 1(1), 33-38. doi: 10.11648/j.ijafrm.20160101.15

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AMA Style

Adeyeye Patrick Olufemi, Ayodele Sunday Owojori, Akinuli Bankole Olu. Impact of Security Expenditure on Foreign Direct Investment in Nigeria. Int J Account Finance Risk Manag. 2016;1(1):33-38. doi: 10.11648/j.ijafrm.20160101.15

Copy | Download

@article{10.11648/j.ijafrm.20160101.15,
  author = {Adeyeye Patrick Olufemi and Ayodele Sunday Owojori and Akinuli Bankole Olu},
  title = {Impact of Security Expenditure on Foreign Direct Investment in Nigeria},
  journal = {International Journal of Accounting, Finance and Risk Management},
  volume = {1},
  number = {1},
  pages = {33-38},
  doi = {10.11648/j.ijafrm.20160101.15},
  url = {https://doi.org/10.11648/j.ijafrm.20160101.15},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijafrm.20160101.15},
  abstract = {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.},
 year = {2016}
}

Copy | Download

TY  - JOUR
T1  - Impact of Security Expenditure on Foreign Direct Investment in Nigeria
AU  - Adeyeye Patrick Olufemi
AU  - Ayodele Sunday Owojori
AU  - Akinuli Bankole Olu
Y1  - 2016/12/09
PY  - 2016
N1  - https://doi.org/10.11648/j.ijafrm.20160101.15
DO  - 10.11648/j.ijafrm.20160101.15
T2  - International Journal of Accounting, Finance and Risk Management
JF  - International Journal of Accounting, Finance and Risk Management
JO  - International Journal of Accounting, Finance and Risk Management
SP  - 33
EP  - 38
PB  - Science Publishing Group
SN  - 2578-9376
UR  - https://doi.org/10.11648/j.ijafrm.20160101.15
AB  - 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.
VL  - 1
IS  - 1
ER  -

Copy | Download