Institutional Quality, Macroeconomic Policy and Economic Development in Nigeria

Ifere, Eugene Okoi; Okoi, Okoiarikpo Benjamin; Bassey, Christian E.

doi:10.15640/jeds.v3n2a14

Cited by 6 publications

(8 citation statements)

References 4 publications

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“…Furthermore, betterment in the quality of institutions also increases returns to education leading to higher demand for education thus enhancing the secondary school enrollment rates. This positive association has also been observed by previous studies such as Shuaibu and Timothy (2016), Okoi et al (2015), andCarmignani (2013).…”

Section: Foreign Capital Flows and Secondary School Enrolment: Role O...supporting

confidence: 88%

Foreign Capital Flows and Human Development in Developing Countries: Does Institutional Quality Matter?

Ali

Jehan

Sherbaz

2022

Zagreb International Review of Economics and Business

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The impact of foreign capital on human development has been at best ambiguous, while that of institutions is undoubtedly favorable. That said, the way foreign capital relates to human development may be affected by the quality of institutions. This paper assesses this very phenomenon in 65 developing countries over the time period 1984-2014. In this regard, this study incorporates three indicators of human development namely, per capita income (PCI), Secondary School Enrollment (SSE) and Life Expectancy (LE). Using two step system GMM estimation technique, we found that the impact of foreign capital varies with respect to the indicators of human development and the type of foreign capital being studied. Both FDI and FPI negatively affect per capita income and secondary school enrollment, while, remittances affect all the indicators of human development positively, except for life expectancy. The interaction between institutions and each type of foreign capital flow exerts a positive influence on all indicators of human development. However, this positive interaction fails to completely eliminate the adverse influence of the capital flows, which reflects inadequacy of existing institutional quality in developing countries and the need for institutional reforms.

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Section: Foreign Capital Flows and Secondary School Enrolment: Role O...supporting

confidence: 88%

Foreign Capital Flows and Human Development in Developing Countries: Does Institutional Quality Matter?

Ali

Jehan

Sherbaz

2022

Zagreb International Review of Economics and Business

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“…Their empirical findings demonstrated a one-way relationship between the rule of law, government effectiveness, and economic growth. Okoi et al (2015) investigated the relationship between institutional quality, macroeconomic policy, and economic development in Nigeria using the OLS technique. According to the study, domestic institutions have a negligible impact on Nigeria's development indexes.…”

Section: Empirical Literature Reviewmentioning

confidence: 99%

“…Low labor-intensive sector productivity, such as agriculture, which employs 77% of working-age adults, has hampered inclusive and broad-based growth. Over the last decade, the agriculture sector has grown at a rate of only 4% per year (Kitole et al, 2022c;Kitole, 2023;Yusuff, 2018;Okoi, 2015;Pere, 2015;Fumbwe et al, 2021), contributing to the country's continued poverty.…”

Section: Introductionmentioning

confidence: 99%

Influence of Governance Components on Economic Growth in Tanzania

Ndilito¹,

Massito

2023

AJERNET

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The link between institutions and economic performance is well established, but there is no single infrastructure blueprint that works for all countries. As a result, identifying the most critical infrastructures required to stimulate economic growth is difficult. The purpose of this research is to identify the governance institutions or components that improve Tanzania's economic performance. Data from 1996 to 2021 were gathered from a variety of sources, including the Ministry of Finance, the Central Bank of Tanzania, and the World Bank. For data analysis, multiple regression models were used, and an error correction model based on modern economic growth theory was used. The variables were stationary in their first difference, according to the Augmented Dickey-Fuller (ADF) tests. The findings show that the rule of law and corruption control increases economic growth by 24.7% and 47.21% significantly unlike the political instabilities which had no significant impact on economic growth. Furthermore, the study finds that voice and accountability, as well as government effectiveness and regulatory quality, have a negative impact on Tanzanian economic growth by 26%, 14.7%, and 21.5% respectively. To sustain economic growth, policymakers should focus on strengthening rule of law institutions, ensuring an effective, efficient, and independent judiciary system, adequately controlling corruption and restructuring the political system to have a significant impact on economic growth.

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“…Furthermore, Sulaiman et al (2017) used a dynamic GMM model over the period 2005 to 2013 and reported that control of corruption and governance negatively affects forest degradation in sub-Saharan Africa. Ifere et al (2015) used OLS method and found that domestic institution did not impact significantly on development indices in Nigeria in the period 1995 to 2013. Iyoboyi and Pedro (2014) used a vector error correction model to demonstrate that in the period 1961 to 2011, institutional quality has a negative relationship with macroeconomic performance in Nigeria.…”

Section: An Overview Of the Literaturementioning

confidence: 99%

Analysis of Sectoral Outcomes and Institutional Quality Nexus in Sub-Saharan Africa

Ekeocha,

Ogbuabor,

Ekeocha

et al. 2023

Sage Open

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Following the need for more recent rigorous empirical evidence on the role of institutions at sectoral level as well as the conflicting empirical evidences on the institutions-growth relationship in Africa, this study investigated the sectoral impacts of institutional quality in Sub-Saharan Africa (SSA). The study also revisited the role of institutions in the aggregate economy. The system GMM estimation procedure and a panel of 42 SSA countries were used over the period 2010 to 2018. The results indicate that contrary to the widely held view that institutions foster growth and development, the role of institutional quality in sectoral and aggregate economic performance in SSA generally remained muted. However, the results indicate that initial level of real GDP and labor are robust drivers of growth, particularly in the aggregate economy. The study therefore concludes that the sub-region requires institutional reform, enhanced human capital development and capital accumulation to drive sectoral and aggregate economic performance in SSA. JEL Classification: N20; F43; C23; N17

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Institutional Quality, Macroeconomic Policy and Economic Development in Nigeria

Cited by 6 publications

References 4 publications

Foreign Capital Flows and Human Development in Developing Countries: Does Institutional Quality Matter?

Foreign Capital Flows and Human Development in Developing Countries: Does Institutional Quality Matter?

Influence of Governance Components on Economic Growth in Tanzania

Analysis of Sectoral Outcomes and Institutional Quality Nexus in Sub-Saharan Africa

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