Thesis (MSc) - Cyprus International University. Institute of Graduate Studies and Research Accounting and Finance Department

Includes bibliography (sheets 57-70)

ABSTRACT
Globalization has made it possible for business organizations to conduct business
activities across borders and this has been discovered to be one of the major driving
forces for the economic development of several countries in the world. This is
observed from the fact that several business organizations from different countries
are entering other countries for business purposes through the concept of foreign
direct investment. However, there are certain possible economic uncertainties that
possibly have effect for countries, especially developing ones such as Nigeria, to
attract foreign direct investment. Therefore, this study was conducted to examine the
impact of economic policy uncertainty on foreign direct investment in Nigeria. This
was achieved quantitatively using secondary data which spans a thirty-one-year
period from 1990 to 2020 retrieved from Central Bank of Nigeria, Nigeria Exchange
Commission, Work Bank Development Index, and others. It is important to note that
the dependent variable is foreign direct investment (FDI) while the independent
variables are uncertainty index, money supply, exchange rate, interest rate and
inflation rate. The analysis was conducted using Vector Auto regression (VAR)
Model to check for the relationships among the variables while Granger Causality
test was applied to determine the causation. The results showed that economic
uncertainty has a negative and significant effect on foreign direct investment in
Nigeria and the causality test showed that there is causality relationship between the
two variables for the period studied.