Submit your papersSubmit Now
For Enquiries: [email protected]
IIARD LogoIIARD

Institutional Factors and Economic Growth in Nigeria Oluwaseun Adeniran Sunday

Oluwaseun Adeniran Sunday, Zechariah Wanujeh and Hamisu Ali

Abstract

This study investigates the relationship between institutional factors and economic growth in Nigeria from 1996 to 2022. It aims to examine the direction of causality among measures of institutional factors and economic growth. The endogenous growth theory provided the theoretical framework for the study. Data were obtained from the World Bank Database. Economic growth was measured using gross domestic product per capita and institutional factors were measured by political stability, government effectiveness, rule of law, and corruption. The Toda-Yamamoto non-granger causality test was used to determine the direction of causality among measures of institutional factors and economic growth. There is unidirectional causality running from political stability to economic growth, government effectiveness to economic growth, and from the rule of law to economic growth. There is bidirectional causality between corruptions to economic growth. The results suggest that strengthening institutions, improving governance, and promoting transparency are essential for unlocking Nigeria’s economic potential. The study recommends judicial reforms, anti-corruption measures, and capacity building to foster a conducive environment for economic growth.

Keywords

Economic growthInstitutional factorsNigeriaRule of lawPolitical stability

References

Appiah, M., Li, F., & Frowne, D. I. (2020). Financial development, institutional quality and economic growth: Evidence from ECOWAS countries. Organizations and Markets in Emerging Economies, 11(1), 6-17. Abubakar, S. (2020). Institutional quality and economic growth: Evidence from Nigeria. African Journal of Economic Review, 8(1), 48-64. Ak?nc?, A., Usta, S., & Kaplan, E. A. (2023). The relationship between economic growth and institutional variables: A panel cointegration analysis for EU countries. Journal of the Knowledge Economy, 14(3), 2395-2419. Science, 8(1), 1185-1198. Alfred, M. V., Ray, S. M., & Zarestky, J. (2020). HRD and social justice: Education in support of the UN sustainable development goals. New Horizons in Adult Education and Human Resource Development, 32(4), 4-16. Al-Naser, M., & Hamdan, A. (2021). The impact of public governance on economic growth: Evidence from gulf cooperation council countries. Economics & Sociology, 14(2), 85-110. Arrow, K. J. (1962). The economic implications of learning by doing. The review of economic studies, 29(3), 155-173. Gasimov, I., Asgarzade, G., & Jabiyev, F. (2023). The impact of institutional quality on economic growth: Evidence from post-Soviet countries. Journal of International Studies, 16(1). 71- Javadov, S., Rustamov, A., Aliyev, E., Bahmanov, Y., & Yarmammadli, N. (2022). Impact of the Institutions on Economic Growth in Selected Post-Soviet Countries. Journal of Eastern Europe Research in Business & Economics, 14(1), 2169-0367. Kim, S. Y., Swann, W. L., Weible, C. M., Bolognesi, T., Krause, R. M., Park, A. Y. ... & Feiock, R. C. (2022). Updating the institutional collective action framework. Policy Studies Journal, 50(1), 9-34. Kouadio, H. K., & Gakpa, L. L. (2022). Do economic growth and institutional quality reduce poverty and inequality in West Africa?. Journal of Policy Modeling, 44(1), 41-63. Kwilinski, A., Lyulyov, O., Pimonenko, T., Dzwigol, H., Abazov, R., & Pudryk, D. (2022). International migration drivers: Economic, environmental, social, and political effects. Sustainability, 14(11), 6413. Lucas. R.E. 1988. "On the Mechanics of Economic Development," forthcoming in Journal of Monetary Economics. Marakbi, R., & Turcu, C. (2016). Corruption, institutional quality and growth: A panel smooth transition regression approach. JEL Classification C, 34, D73. Nguyen, T. M., Ngo, L. V., & Gregory, G. (2022). Motivation in organizational online knowledge sharing. Journal of Knowledge Management, 26(1), 102-125. Nwachukwu, G. O. (2024). Human Capital Development: A Driver for Educational Improvement in Nigeria. British Journal of Education, 12(6), 30-39. Ogbuabor, J. E., Onuigbo, F. N., Orji Anthony,., & Anthony-Orji, O. I. (2020). Institutional quality and economic performance in Nigeria: a new evidence. International Journal of Economics and Statistics, 8(2020), 38-49 Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of applied econometrics, 16(3), 289-326. Peters, B. G. (2022). Institutional theory. In Handbook on theories of governance (pp. 323-335). Edward Elgar Publishing. Procházka, P., & ?ermáková, K. (2015). Influence of selected institutional factors on the economic growth: Case open markets. Procedia Economics and Finance, 30, 702-709. Romer, P. M. (1990). Endogenous technological change. Journal of political Economy, 98(5, Part 2), S71-S102. Schilirò, D. (2019). The growth conundrum: Paul Romer’s endogenous growth. Tinta, A. A. (2022). Financial development, ecological transition, and economic growth in Sub- Saharan African countries: the performing role of the quality of institutions and human capital. Environmental Science and Pollution Research, 29(25), 37617-37632. Udochukwu, N. E. (2024). Impact of Institutional Framework on Economic Growth of Nigeria (1996 to 2022). International Journal of Research and Innovation in Social Utile, T. I., Ijirshar, V. U., & Adoo, S. E. M. (2021). Impact of institutional quality on economic growth in Nigeria. Gusau International Journal of Management and Social Sciences, 4(3), 21-21. Wandeda, D. O., Masai, W. & Nyandemo, S. M. (2021). Institutional quality and economic growth: evidence from sub-Saharan Africa countries. African Journal of Economic Review, 9 (4), 106-125. Zolfaghari, M., Kabiri, M., & Saadatmanesh, H. (2020). Impact of socio-economic infrastructure investments on income inequality in Iran. Journal of Policy Modeling, 42(5), 1146-1168.

More Articles from INTERNATIONAL JOURNAL OF SOCIAL SCIENCES AND MANAGEMENT RESEARCH

Building National Analytics Capacity: Advances and Future Pathways

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Root-Cause and Thematic Analysis for Major Incident Management: A Review

Author: Ifeanyichukwu Jeffrey Okwesa, Uchechi Mary-Linda Unamma, Uzoamaka Iwuanyanwu

Data-Quality and Single-Source-Of-Truth Frameworks for Inter- Agency Reporting: A Review

Author: Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey Okwesa, Uzoamaka Iwuanyanwu

Human-In-The-Loop Decision Systems: Advances and Future Directions

Author: Funmilayo Ashore-Onisemo, Uchechi Mary-Linda Unamma, Ifeanyichukwu Jeffrey, Okwesa,

Roles of Oil Subsidy Removal on Transportation Cost and Water Factory in Cross River South, Nigeria

Author: Onwuzurike Peter Tobechi, Owoh Akwa Owoh, Unoh Grace Inyang, Umaru Musa