OPENNESS, INSTITUTIONS AND ECONOMIC GROWTH IN NIGERIA
Muhammad Yusuf and Auwal Abubakar Muhammad
Volume 2 Issue 2
Abstract
This paper examined the influential relationship between Nigeria opening –up, institutional quality and economic growth from 1999-2019.The significance of this study is the inclusion of institutional quality of bureaucracy, civic liberty, rule of law, government accountability and control of corruption into the trade, growth relationship, which are, rarely studied in the context of Nigeria. To achieve the stationary of the data Unit root was employed, to check multicollearity, correlation analysis was employed. Also auto regressive distributed lag model (ARDL) was applied to examine the long run relationship while dynamic error correction model was applied to determine the short run dynamics. There is long term stable co-integration relationship between, opening-up, Institutions and Economic growth in Nigeria. Evidence from the dynamic Economic growth model has established linkage of rule of law, civil liberty and control of corruption influence on economic growth in Nigeria. However, rule of law, civil liberty, control of corruption, has influential impact on opening-up of the Nigeria economy. This implies that Trade liberalization policy requires good governance capabilities in Nigeria. The Policy implication of, this study suggest that institutions are very important for enhancing the spillover growth effect of trade liberalization in Nigeria. Keywords: Trade Liberalization, Economic Growth and Institutions
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