American International Journal of Social Science

Trade Policy and Private Investment Behaviour in Nigeria: 1980-2013
Baghebo, Michael, Koginam. O. Alex

Abstract
The study empirically examined Private investment behavior in eras of trade policy reforms in the country using secondary data. Dummy variable of 1 was used to represent trade policy reforms from 1986-2003 and 0 to represent other years. The stationary status of the data series was investigated. The ordinary least square regression was used to determine the impact of trade policy on private investment behavior. The response of private investment to trade policy was very slow about 0.35 percent. This could be as a result lack of credibility and sustainability of trade policies experienced by investors over the years. Investors may prefer a ‘’wait and look attitude’’. Causality runs unidirectional from Trade policy to Private investment. It is recommended that consistency and lasting of government trade policy should be strengthened to build more confidence by investors.

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