Effects of Governance on Economic Growth in Nigeria
Keywords:
Governance, Economic Growth, Political Stability, ARDL
Abstract
The study investigates the effects of governance on economic growth in Nigeria from 1996 to 2021. The study adopts ARDL as an estimation technique, while the findings empirically show that the absence of violence and terrorism and political stability, and RGDPCC significantly and positively correlate in both the short and long run. This implies that improving political stability and tackling security issues can greatly promote the economic growth of Nigeria. The report suggests that the Nigerian government prioritise political stability and security measures from these findings. Enhancing a favourable atmosphere for investment and economic activity entails promoting social cohesiveness, tackling the underlying causes of conflict, and building security infrastructure so as to prove a more thorough grasp of the governance-growth relationship in a multiplicity of contexts.
References
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Abubakar, A. (2022). Democratic institutions and fiscal decentralization: Impact on Nigeria's economic growth. African Development Review, 34(1), 56-78.
Acemoglu, D., & Robinson, J. A. (2008). The role of institutions in growth and development. The World Bank Research Observer, 23(2), 123-147. https://doi.org/10.1093/wbro/lkn007
Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown Publishers.
Arshad, S. (2019). Institutional quality, foreign direct investment, and economic growth in 104 countries. International Journal of Economics and Finance, 11(5), 23-39. https://doi.org/10.5539/ijef.v11n5p23
Azfar, O., Gurgur, T., & Meagher, P. (2018). Governance and economic performance: A survey. Journal of Economic Surveys, 32(4), 1012-1038. https://doi.org/10.1111/joes.12236
Bovaird, T., & Loeffler, E. (2007). Assessing the quality of local governance: A case study approach. Public Money & Management, 27(4), 293-300. https://doi.org/10.1111/j.1467-9302.2007.00597.x
Capra, F., & Jakobsen, O. D. (2017). A conceptual framework for ecological economics based on systemic principles of life. International Journal of Social Economics, 44(6), 831-844. https://doi.org/10.1108/IJSE-04-2016-0113
Dzingirai, C. (2017). Good governance and economic growth in Africa. African Journal of Public Affairs, 9(5), 1-15.
Effiong, U. E., & Okijie, E. B. (2021). Institutions and economic growth in Nigeria: A time series analysis. Journal of African Economies, 30(2), 178-200.
Fraj, S. H., Hamdaoui, M., & Maktouf, S. (2018). Governance, economic growth, and exchange rate regimes: Evidence from 50 countries. Journal of Economic Integration, 33(3), 512-538. https://doi.org/10.11130/jei.2018.33.3.512
Glasser, M. (2018). People-driven development: A new paradigm for sustainable growth. Development Policy Review, 36(S1), O123-O140. https://doi.org/10.1111/dpr.12287
Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others? The Quarterly Journal of Economics, 114(1), 83-116. https://doi.org/10.1162/003355399555954
Hughes, O. E. (2017). Public management and administration: An introduction (5th ed.). Palgrave Macmillan.
Kwasi Fosu, A. (2021). Governance and economic development in Africa: A historical perspective. Journal of African Development, 23(1), 45-67.
Mahmood, H. (2021). Governance and economic growth: A cross-country analysis. International Journal of Development Issues, 20(2), 231-250. https://doi.org/10.1108/IJDI-08-2020-0183
Neise, T. (2018). Institutions and economic growth: A review of new growth theory. Economic Systems Research, 30(3), 405-422. https://doi.org/10.1080/09535314.2018.1476210
Olabiyi, K. A., & Olowookere, J. K. (2021). Determinants of economic growth in Nigeria: How much does governance matter? Journal of Economic and Administrative Sciences, 37(4), 456-473. https://doi.org/10.1108/JEAS-03-2020-0032
Omri, A., Kahouli, B., & Afi, H. (2021). Does governance matter for economic growth? Evidence from Nigeria. Journal of Policy Modeling, 43(4), 803-821.
https://doi.org/10.1016/j.jpolmod.2021.02.005
Orsini, A., & Ortega, M. (2020). Democratic governance and economic development in Nigeria. Journal of Public Administration and Governance, 10(3), 45-62. https://doi.org/10.1108/JPAG-03-2020-0012
Romer, P. M. (2001). Endogenous technological change. In Economic growth (pp. 101-126). MIT Press.
Samarasinghe, T. (2018). The role of institutions in economic development: A review. Journal of Economic Surveys, 32(3), 689-708. https://doi.org/10.1111/joes.12210
Ukwandu, D. C., & Jarbandhan, D. B. (2016). Institutions and economic growth: The role of Douglass North’s new institutionalism. Journal of Public Administration, 51(3), 432-450.
Abubakar, A. (2022). Democratic institutions and fiscal decentralization: Impact on Nigeria's economic growth. African Development Review, 34(1), 56-78.
Acemoglu, D., & Robinson, J. A. (2008). The role of institutions in growth and development. The World Bank Research Observer, 23(2), 123-147. https://doi.org/10.1093/wbro/lkn007
Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown Publishers.
Arshad, S. (2019). Institutional quality, foreign direct investment, and economic growth in 104 countries. International Journal of Economics and Finance, 11(5), 23-39. https://doi.org/10.5539/ijef.v11n5p23
Azfar, O., Gurgur, T., & Meagher, P. (2018). Governance and economic performance: A survey. Journal of Economic Surveys, 32(4), 1012-1038. https://doi.org/10.1111/joes.12236
Bovaird, T., & Loeffler, E. (2007). Assessing the quality of local governance: A case study approach. Public Money & Management, 27(4), 293-300. https://doi.org/10.1111/j.1467-9302.2007.00597.x
Capra, F., & Jakobsen, O. D. (2017). A conceptual framework for ecological economics based on systemic principles of life. International Journal of Social Economics, 44(6), 831-844. https://doi.org/10.1108/IJSE-04-2016-0113
Dzingirai, C. (2017). Good governance and economic growth in Africa. African Journal of Public Affairs, 9(5), 1-15.
Effiong, U. E., & Okijie, E. B. (2021). Institutions and economic growth in Nigeria: A time series analysis. Journal of African Economies, 30(2), 178-200.
Fraj, S. H., Hamdaoui, M., & Maktouf, S. (2018). Governance, economic growth, and exchange rate regimes: Evidence from 50 countries. Journal of Economic Integration, 33(3), 512-538. https://doi.org/10.11130/jei.2018.33.3.512
Glasser, M. (2018). People-driven development: A new paradigm for sustainable growth. Development Policy Review, 36(S1), O123-O140. https://doi.org/10.1111/dpr.12287
Hall, R. E., & Jones, C. I. (1999). Why do some countries produce so much more output per worker than others? The Quarterly Journal of Economics, 114(1), 83-116. https://doi.org/10.1162/003355399555954
Hughes, O. E. (2017). Public management and administration: An introduction (5th ed.). Palgrave Macmillan.
Kwasi Fosu, A. (2021). Governance and economic development in Africa: A historical perspective. Journal of African Development, 23(1), 45-67.
Mahmood, H. (2021). Governance and economic growth: A cross-country analysis. International Journal of Development Issues, 20(2), 231-250. https://doi.org/10.1108/IJDI-08-2020-0183
Neise, T. (2018). Institutions and economic growth: A review of new growth theory. Economic Systems Research, 30(3), 405-422. https://doi.org/10.1080/09535314.2018.1476210
Olabiyi, K. A., & Olowookere, J. K. (2021). Determinants of economic growth in Nigeria: How much does governance matter? Journal of Economic and Administrative Sciences, 37(4), 456-473. https://doi.org/10.1108/JEAS-03-2020-0032
Omri, A., Kahouli, B., & Afi, H. (2021). Does governance matter for economic growth? Evidence from Nigeria. Journal of Policy Modeling, 43(4), 803-821.
https://doi.org/10.1016/j.jpolmod.2021.02.005
Orsini, A., & Ortega, M. (2020). Democratic governance and economic development in Nigeria. Journal of Public Administration and Governance, 10(3), 45-62. https://doi.org/10.1108/JPAG-03-2020-0012
Romer, P. M. (2001). Endogenous technological change. In Economic growth (pp. 101-126). MIT Press.
Samarasinghe, T. (2018). The role of institutions in economic development: A review. Journal of Economic Surveys, 32(3), 689-708. https://doi.org/10.1111/joes.12210
Ukwandu, D. C., & Jarbandhan, D. B. (2016). Institutions and economic growth: The role of Douglass North’s new institutionalism. Journal of Public Administration, 51(3), 432-450.
Published
2026-01-12
Section
Articles
