The role of institutions in the fdi-growth relationship in a developing economy: a new evidence from Nigeria
Jonathan E. Ogbuabor – Anthony Orji – God’stime O. Eigbiremolen – Charles O. Manasseh – Fidelia N. Onuigbo
Abstract
Following the need for studies on the role of institutions in the foreign direct invest-ment-economic growth relationship in Nigeria and the attendant challenges post by the global pandemic caused by Covid-19, this study investigated whether institu-tional quality enhances this relationship over the period 1981 – 2018. The study used institutional data from Freedom House, and the autoregressive distributed lag (ARDL) modeling framework. The results show that the role of institutions in en-hancing the FDI-growth relationship in Nigeria is significant, both in the long-run and in the short-run. The results also show that trade is an important driver of growth in Nigeria. Among others, the study recommends the evolution of strong in-stitutional framework that can create the enabling environment for inflow of invest-ments into the Nigerian economy. Such institutional framework should entrench re-spect for the rule of law, property rights, civil liberties, transparency and accountabil-ity in governance. Furthermore, there is need to evolve policies that will continue to mitigate the adverse effect of the Covid-19 pandemic since FDI inflows and growth figures have been globally affected by the pandemic.
Keywords: Institutional Quality; Foreign Direct Investment; Economic Growth; ARDL Model
JEL Classification: N20; F21; F43; C22
Received: 5.11.2020 Accepted: 8.12.2020 Published: 31.12.2020
How to cite this (APA 7th edition):
Ogbuabor, J., Orji, A., Eigbiremolen, G., Manasseh, Ch. & Onuigbo, F. (2020). Data Sources and Data Typology for Audience Research in Performing Arts Institutions. Studia commercialia Bratislavensia: vedecký časopis Obchodnej fakulty Ekonomickej univerzity v Bratislave, 13(4), 348-363.
ISSN (online): 1339-3081
Publisher: Fakulty of Commerce, University of Economics in Bratislava
License:
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.