DOES INSTITUTIONAL QUALITIES STIMULATES THE SPILLOVER EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA

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Published: 2015-06-25

Page: 55-64


MUHAMMAD YUSUF *

Department of Economics, Faculty of social and Management Science, Umaru Musa Yar’adua University, Katsina State, Nigeria.

*Author to whom correspondence should be addressed.


Abstract

This study seeks to explore the relationship between institutions, foreign direct investments and the growth of the Nigeria economy. The study specifically, investigate whether some selected institutional qualities such as civil liberty, rule of law, accountable executive and  control of corruptions, modulate the spill-over effect of foreign direct investment on economic growth, which are, rarely studied in the context of Nigeria. The auto regressive distributed lag model (ARDL) was applied to examine the long run relationship and VECM was applied to determine the short run dynamics. It was revealed that there is long run relationship between Institutional qualities, foreign direct investment and Economic growth in Nigeria. Evidence from the dynamic models  have established linkage of rule of law, civil liberty and control of corruption influence on the spillover growth effect of foreign direct investment in Nigeria. Therefore, these study findings strongly supported the needs for context specificity types of growth enhancing institutions for improving the spillover growth effect of foreign direct investment in Nigeria.

Keywords: Foreign direct investment, spill over, economic growth and institutions


How to Cite

YUSUF, M. (2015). DOES INSTITUTIONAL QUALITIES STIMULATES THE SPILLOVER EFFECT OF FOREIGN DIRECT INVESTMENT ON ECONOMIC GROWTH IN NIGERIA. Journal of Global Economics, Management and Business Research, 4(2), 55–64. Retrieved from https://ikprress.org/index.php/JGEMBR/article/view/1732

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