Impact of interest rate liberalization on investment in Nigeria:- Chiadikaobi Chinaza B

ABSTRACT x The study examined the impact ofinterest rate liberalization on investment in Nigeriafrom 1975- 2018 using error correction model (ECM). The empiricalfindings ofthe study provide evidence that interestrate liberalization has no significant effect on investment in Nigeria. The resultfurther showed that interest rate andpublic expenditure are insignificantfactors explaining variations of investment. However, market capitalization and trade openness exerted a positive significant impact on investment. The study therefore recommended that government through the central bank ofNigeria should use her monetarypolicies to influence interest rate in such a way as to stimulate investment in Nigeria