Insecurity on Economic and Business Climate; Empirical Evidence from Nigeria

Document Type: Technical Note

Authors

1 Department of Management, University of Nigeria in Nsukka, Enugu Campus Nigeria

2 Department of Banking and Finance, University of Nigeria in Nsukka, Enugu Campus Nigeria

Abstract

Insecurity undermines the economic and business prowess of a nation. Tallying to the human cost, it sabotaged the right to life, liberty, and freedom. This study tests the long run effect and cause of insecurity from 2007-2017 in Nigeria. Using a framework of the Auto-Regressive Distributed Lag Model (ARDL) and Error Correction Model (ECM). Findings revealed that insecurity in Nigeria is majorly internal factors and government expenditure on security in Nigeria is far below the United Nations Standard. The ECM report that disequilibrium caused by internal factors instigating insecurity can be revised back to equilibrium at 25% annually. To improve the economic and business climate competitive advantage.

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