Modeling the Determinants of Private Investment in Nigeria: 1980-2015
EGBERI KELVIN AGBARHA, MONYE M. C.

Abstract
The main objective of the study is to develop a model to empirically investigate the determinants of private investment in Nigeria. The study which spans the period between 1980 and 2015 used the co integration technique and the Error Correction Mechanism. The ADF result shows that all the variable are I(1) and the Johansen co integration test result indicates a long run equilibrium relationship among the variables. The parsimonious ECM result indicates that the previous level of private investment, aggregate demand, savings, and electricity generation have positive and significant impact on current level of private investment. Interest rate has a negative and significant impact on private investment while inflation rate has an insignificant and negative impact on private investment. The result recommends improvement in aggregate demand and a reduction in interest rate to private investors amongst others.

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