- –

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. .

.
Abstract:
This study aims to shed light on one of the forms of international capital flows, which is foreign
portfolio investment through addressing the concept of this type of investment and highlighting
the positive and negative aspects in it, and clarify the theories that explain it and its determinants.
To achieve these objectives we used the descriptive approach that is consistent with the nature of
the subject. The study showed many results, the most important of which is that foreign portfolio
investment has many positive aspects, through investing in foreign securities can activate the
domestic financial market and finance economic development in developing countries, but it
should not be overlooked cons of foreign portfolio investment, where usually Its inflows are
volatile and unstable given the short-term nature of this type of investment. The study also
showed that the determinants of foreign portfolio investment are: external factors associated with
the global economic environment such as the increasing international trend towards This is
known as financial liberalization, economic cycles in developed countries, the trend towards
investment in global markets, and internal factors that are related to the recipient country of
foreign investment, including the macroeconomic factors of these countries and the factors
related to the financial market. The study recommended the need to provide a range of incentives
to foreign investors in order to reduce the volatility of foreign portfolio investment and to make
the most of it.
Keywords: foreign portfolio investment, theories foreign portfolio investment, direct
investment.

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1
-Akinmulegun Sunday O, Capital Market Development and Foreign Portfolio Investment Inflow in Nigeria (1985-
2016), Advances in Economics and Business 6(5), 2018, p299.
2
63
.80 2013 64
3
.10 1980
4
.367 2001
5
- Ekeocha, Chidinma Stella Malaolu, Victor Oduh, Moses Onyema , Modelling the Long Run Determinants of
Foreign Portfolio Investment in Nigeria, ournal of Economics and Sustainable Development Vol.3, No.8, 2012, p
194.
6
- Patricia Lindelwa Makoni, Godfrey Marozva, THE NEXUS BETWEEN FOREIGN PORTFOLIO
INVESTMENT AND FINANCIAL MARKET DEVELOPMENT: EVIDENCE FROM MAURITIUS, Academy of
Strategic Management Journal Volume 17,
Issue 5, 2018, p01.
7
(2010 1996)
.114 47 ( )
8
- AJAYI Lawrence Boboye et al, Impact of Foreign Private Investment on the Development of Nigerian Capital
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9
.251 2005 2
10

.164 2008 03

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- Dr. C.I. Ezeanyeji, Ifeako Maureen, Foreign Portfolio Investment on Economic Growth of Nigeria: An Impact
Analysis, International Journal of Academic Management Science Research (IJAMSR), Vol. 3 Issue 3, March –
2019, p27.
12
-Ibid,p27.
13

.256 2017 03 19
14
-Asma Salman, Empirical Analysis of Portfolio Investments in Pakistan, 3rd International Conference on
Advanced Computer Theory and Engineering(ICACTE) 2010, p24.
15

. 75 2013 62 61
16
- Osmond N. OKONKWO, Foreign Portfolio Investment And Industrial Growth In Nigeria (1986 - 2013),
International Journal of Innovative Finance and Economics Research 4(3):31-38, July-Sept. 2016, p
33.
17
- lbid, p 33.
18
- C.I. Ezeanyeji1, Ifeako Maureen, Foreign Portfolio Investment on Economic Growth of Nigeria: An Impact
Analysis, International Journal of Academic Management Science Research (IJAMSR), Vol. 3 Issue 3, March 2019,
Pages: 24-36, p26.
19

. 26 2017
20
-
.110 2013 -
21
- Ruth Atobrah, Determinants of foreign portfolio investment: evidence from Sub-saharan africa, University Of
GHANA, A thesis of master of philosophy in finance degree, GHANA, July 2015, p
24.
22
:
.32 2016
23
)
.54 52
24
Guluzar Kurt Gumus, Atakan Duru, Bener Gungor, THE RELATIONSHIP BETWEEN FOREIGN PORTFOLIO
INVESTMENT AND MACROECONOMIC VARIABLES, European Scientific Journal December 2013 edition
vol.9, No.34, p 216.
25
. 106 1998 "
26
.156 2009
27

.26 2002
28

. 69 2015 03
29
(2007 1995) :
.60 2010

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