Analysis of the Determinant of Private Investment Behaviour in Nigeria Between 1984 and 2016

Abstract

The study carried out a trend analysis of private investment, examined the factor that determines private investment behaviour, and compared the relative effectiveness of the factors that determine private investment decision in Nigeria. Data for the study are sourced from the Global Development Network Database of World Bank, and seven variables are identified as determinants for estimation. The estimation techniques adopted for this study are the panel data error correction approach which uses structure dynamics. The study, therefore, recommended that effort should be made in Nigeria to increase the real factor of the economies to promote real domestic output that will attract and enhance accelerated private investment. Also, investment policy framework should be based on short-term target than long-term targets because most of the identified determinants were significant on the short run.