Skip to content
Research Article Open access CC BY 4.0

Impact of Kidnapping and Political Instability on Investment in the Nigerian Economy

Anochie Okechukwu Emmanuel, Nkechukwu Gabriel Chukwu, Asiagwu Harriet

Asian Journal of Economics, Business and Accounting · pp. 54–67 · Published 30 Jan 2024

10.9734/ajeba/2024/v24i31241

Abstract

This study investigated the impact of kidnapping and political instability on investment in Nigerian economy. To achieve this objective, relevant data used spanning from 2006-2022 were sourced from the World Bank Indicators, and Worldwide Governance Indicators for the period under review. Preliminary test were conducted and Ordinary Least Square (OLS) regression was the analytical tool for this study. Political stability and the Absence of Violence/Terrorism Estimate (PSAVTE) were utilized as the independent variables, and Foreign Direct Investment (FDI) as a percentage of GDP was employed as the dependent variable. Based on the analysis, there exist a negative relationship between FDI, and PSAVTE, the F-statistic of the regression output stood at 1.082523 this implies that the regression plane is not statistically significant. Also, the Prob. (F-Statistic) 0.314615 is greater than the 0.05 level of significance implies that there is no statistical significant relationship between the variables. R2 = 0.067311 implies that about 6.73% of the total variation in the model specified was accounted for by the independent variables. FDI and PSAVTE are platykurtic. All the variables were stationary and significant at their respective values. No causality among the variables, thus, no existence of long-run relationship between the variables. In conclusion, kidnapping and political instability has adverse effect on investment, the fear of attack on business during conflict affects business decisions and the degree of investment. The study recommends that government must reduce the degree of unemployment in Nigeria, since a high level of unemployment promotes social vices, crime, and political instability.

Foreign direct investment kidnapping political instability unemployment and Nigerian Economy

References (13)

  1. 1 Dependence in an Interdependent World: The Limited Possibilities of Transformation Within the Capitalist World Economy [DOI]
  2. 2 Activities of Boko Haram and Insecurity Question in Nigeria [DOI]
  3. 3 A World-System Perspective on the Social Sciences [DOI]
  4. 4 Nexus between Political Instability and Economic Growth in Pakistan [DOI]
  5. 5 Political instability and economic growth in Africa [DOI]
  6. 6 The impact of political instability on the economic growth of ECOWAS member countries [DOI]
  7. 7 The Social Problem of Kidnapping and its Implications on the Socio-Economic Development of Nigeria: A Study of Uyo Metropolis [DOI]
  8. 8 Kidnapping in Nigeria: An Emerging Social Crime and the Implications for the Labour Market
  9. 9 Capitalizing on Value: Towards a Sociological Understanding of Kidnapping [DOI]
  10. 10 Understanding the Impact of Leadership in Nigeria [DOI]
  11. 11 Militancy and Insecurity in the Niger Delta: impact on the inflow of foreign direct investment to Nigeria.
  12. 12 History of Terrorism, Youth Psychology and Unemployment in Nigeria
  13. 13 The economic impact of prolonged political instability: a case study of Fiji [DOI]

Cited by 0

No indexed citations yet.

Related research

Article metrics

Real usage data collected on this platform.

13

Page views

0

PDF downloads

1

Outbound clicks

0

Citations

Views over time

Views by country

Approximate, from request IP at view time — not citizenship or institution. Countries with fewer than 5 views are grouped as "Other".

Traffic sources

Referring site, by host.

Views and downloads exclude known bots/crawlers. Citations combines this platform's own DOI-resolved index with each external source's own reported total — see Cited by above for individually listed citing works. Last refreshed 0 seconds ago.