DEGREE OF SHOCK ELASTICITY RESPONDS Of SECURITY CHALLENGES ON INVESTMENT GROWTH IN NIGERIA, 1980 to 2024: VECTOR AUTO-REGRESSION MODEL (VAR) APPROACH

Abstract

This study examined degree shock elasticity responds of security challenges on investment growth in Nigeria for the period (1980- 2024). The study considered the following objectives, to determine the degree of shock elasticity response of security challenges on investment growth in Nigeria and investigate effect of security challenges on investment growth in Nigeria. Secondary time series data were used to carry out the empirical analysis. The study employed the aid of Vector Auto-Regression model (VAR) approach, Augmented Dickey-Fuller (ADF), Phillips- Perron tests, Co-integration Test Erro Correction Model (ECM). Based on the above econometric and statistical analyses conducted, it was observed that security challenges have significant effect on investment growth in Nigeria. The result reported that there is a significant positive shock elasticity response of security challenges on investment growth in Nigeria and Security challenges have significant effect on the investment growth in Nigeria within the study period. Based on these findings, the researcher recommends that; government should prioritize the financing of security initiatives and adopt security literacy as a fundamental national strategy. It is imperative for Nigerian security authorities to enhance both informal and formal security operations within the country.