Journal of Business & Economic Policy

Economic Growth and Development in Nigeria: Which Institutions Infrastructure Matter
Edet Okon Anwana, Ph.D; Samuel E. Affia

Abstract
There is a close link between institutions and economic performance. However, a particular institutions infrastructure blueprint that equally fit all countries doesn’t exist. Identifying the most pressing infrastructures required to stimulate economic performance then becomes a problem. This study is undertaken to determine which institutions infrastructure enhances economic performance in Nigeria. Time series data from 1986 to 2016 were sourced from the Central Bank of Nigeria, World Bank, etc. Multiple regression model was employed for data analysis and ECM was adopted. The regression model was based on modern economic growth theory. The ADF tests showed that the variables were stationary; uni-directional causal relationship exists between governance institutions and economic growth/development in Nigeria. The ECM coefficient was significant. The findings indicate that while economic and regulatory institutions significantly impact economic growth, norms and social institutions insignificantly impact economic growth. Further, the study reveals that governance, legal/security as well as political institutions all negatively impact economic growth/development. The study concludes that in Nigeria, economic and regulatory institutions drive economic growth, while governance, legal/security and political institutions hamper economic growth. Thus, only economic and regulatory institutions matter in Nigeria. To sustain economic growth therefore, policies should be directed at strengthening economic, financial and regulatory institutions; equipping and enhancing public and civil services, and severing them from political interference; enhancing civil liberties and rule of law with an effective security system. Enhance effective, efficient and independent judiciary. Effectively and adequately control crimes, terrorism and violence; and restructuring the political system.

Full Text: PDF