Department of Business Management, Faculty of Management Sciences, Imo State University, Nigeria.
World Journal of Advanced Research and Reviews, 2025, 27(01), 095-103
Article DOI: 10.30574/wjarr.2025.27.1.2368
Received on 23 May 2025; revised on 29 June 2025; accepted on 01 July 2025
This study examines the relationship between inflation and investment decisions in Nigeria using data from 2010-2024. Employing a comprehensive econometric approach including fixed effects regression, Vector Autoregression (VAR), and Granger causality tests, we analyze how inflationary pressures influence both private and public investment decisions. Our findings reveal a significant negative relationship between inflation and investment levels, with a 1% increase in inflation leading to a 0.65% decrease in private investment. The study contributes to the understanding of macroeconomic dynamics in emerging African economies and provides policy recommendations for maintaining price stability to foster investment growth.
Inflation; Investment Decisions; Nigeria; Macroeconomic Policy; Economic Development; Monetary Policy
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Ugbaja Okafor Chukwu. Evaluating the impact of inflation on investment decisions in Nigeria. World Journal of Advanced Research and Reviews, 2025, 27(01), 095-103. Article DOI: https://doi.org/10.30574/wjarr.2025.27.1.2368.
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