• DANLADI BASHIR

This study examines the linkage between institutional quality and foreign direct investment in Nigeria. The institutional quality indicators include control on corruption, rules of law, political stability, government effectiveness, voice & accountability, and regulatory quality. The main objective of this study is to find out the nexus between institutional quality and foreign direct investment in Nigeria. This study consists of time series data sourced from the database of World Development indicators. The study employs Autoregressive Distributed Lag Model. The study period covers from 1996 to 2021. Empirical findings of ARDL found that institutional quality has positive and statistically significant influences on the inflow foreign direct investment in Nigeria. Similarly, the study utilized other explanatory variables such as the exchange rate. The result of found the negative and statistically significant influence of exchange rate on foreign direct investment inflow, therefore, the robustness of country’s institutional quality is usually dependent on the strength of the institutional quality. Consequently, the study suggests the need for strong institutional quality for the higher foreign direct investment inflow in Nigeria by way of policy reforms that strengthen the quality and efficiency of the institutions.

Institutional quality, FDI, exchange rate, trade, ARDL technique

"The Nexus between Institutional Quality and Foreign Direct Investment in Nigeria", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.9, Issue 12, page no.c85-c93, December-2022, Available :http://www.jetir.org/papers/JETIR2212214.pdf

"The Nexus between Institutional Quality and Foreign Direct Investment in Nigeria", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.9, Issue 12, page no. ppc85-c93, December-2022, Available at : http://www.jetir.org/papers/JETIR2212214.pdf