Abstract:
The essence of this study was to assess the nexus between foreign direct investment inflows and Capital market development in Nigeria between 1989 and 2018, Ordinary least square (OLS) regression analysis (the simple linear regression method analysis) were used in the study. These analyses were used in order to find the linear relationship between the independent variables, which are: NPI and FDI; and the dependent variables which are MCP and SMV. The parameter estimated of the Net Portfolio Investment (NPI) showed that it relates positively with Market Capitalisation (MCP) but was found statistically insignificant. The Stock Market Value (SMV) variable was also found to be positively and significantly related to the Foreign Direct Investment FDI). The study therefore, recommends that the nation should explore and adopt all viable options of encouraging both local and international investors into the economy in order to increase foreign direct investment in Nigeria that will turn boost the capital market.
