Abstract: The objective of the study is to examine the effect of institutional quality on investment and economic growth in Nigeria from 1990 to 2016. The study used annual time series data collected from Central Bank of Nigeria (CBN) Statistical Bulletin, the Freedom House, and Heritage Foundation a. A functional model of the relationship between institutional quality, investment and Economic Growth was specified and estimated as Error Correction Model using Eigen Granger approach. The unit root test result reveals that all the variables were not stationary at level. However they all became stationary after first differencing. The co-integration analysis of the differenced variables shows that the variables are co-integrated. The result from the Error Correction Model revealed that institutional quality measured as corruption perception index has negative and significant effect on investment and economic growth; while the institutional quality measured as economic freedom and financial system efficiency has positive and significant effect on investment and economic growth. It is therefore recommended that the Nigerian government should put in place quality institutions to make the economy conducive for investment and economic growth.
Keywords: Institution, Corruption, Perception, Financial System Efficiency, Economic Growth, Investment.
Title: Institutional Quality, Investment and Economic Growth in Nigeria, 1990- 2017
Author: Boma Cookey, Good Wilson, Monfred Baribor, Kuluma Beredugo
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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