The Mediating Role of Governance in Foreign Direct Investment Inflows and Economic Performance Nexus: New Evidence from Nigeria
-
Published:2023-11-15
Issue:4
Volume:6
Page:57-73
-
ISSN:2689-5080
-
Container-title:African Journal of Economics and Sustainable Development
-
language:en
-
Short-container-title:African Journal of Economics and Sustainable Development
Author:
A.E. Ozegbe,L.O. Salami
Abstract
The recent FDI-growth literature suggests that the varying effects of foreign direct investment on economic growth in host countries might be due to certain domestic factors that determine the benefits of FDI. Among these factors is the quality of governance; thus, this study examined how the interaction between foreign direct investment (FDI) and governance affects the performance of the Nigerian economy by relying on annual time series data spanning 1986 to 2021. The results from the autoregressive distributed lag (ARDL) model revealed that the interaction between governance and foreign direct investment exerts a positive and highly significant impact on economic performance. Apparently, the interaction between governance and foreign direct investment appears to be elastic. The foregoing suggests that governance is a significant moderating factor between foreign direct investment and economic performance in Nigeria.
Publisher
African - British Journals
Subject
Materials Science (miscellaneous)
Reference50 articles.
1. Acemoglu, D., Johnson, S., & Robinson, J. A. (2005). Institutions as a fundamental cause of long-run growth. Handbook of economic growth, 1, 385-472. 2. Arestis, P., Şen, H., & Kaya, A. (2021). On the linkage between government expenditure and output: empirics of the Keynesian view versus Wagner’s law. Economic Change and Restructuring, 54(2), 265-303. 3. Awadhi, M., James, M., & Byaro, M. (2022). Does institutional development attract foreign direct investments in Sub-Saharan Africa? A dynamic panel analysis. African Journal of Economic Review, 10(1), 117-129 4. Awan, R. U., Akhtar, T., Rahim, S., Sher, F., & Cheema, A. R. (2018). Governance, corruption and economic growth. Pakistan Economic and Social Review, 56(1), 1-20. 5. Bao, X., Deng, J., Sun, H., & Sun, J. (2022). Trade policy uncertainty and foreign direct investment: Evidence from China’s WTO accession. Journal of International Money and Finance, 125, 102642.
|
|