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

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.