You have no items in your shopping cart.
ABSTRACT
The study empirically investigates the relationship between institutional quality and foreign capital inflows in Nigeria for the period 1986 to 2022. The specific objectives of the study were to ascertain whether rule of law, political stability, government effectiveness, quality of regulatory and control corruption have any significant impact on foreign capital inflows in Nigeria. To this end, the cointegration econometric technique and Error Correction Model (ECM) were employed in the analysis of data. The results obtained revealed that rule of law has significant positive relationship with foreign capital flows both at the short run and in the long run; in the short run, control of corruption has significant negative impact on foreign capital flows; political stability and government effectiveness have significant negative relationship with foreign capital flows, and the quality of regulatory system in Nigeria does not have any significant relationship with foreign capital flows both at the short run and in the long run. The study recommends that, appropriate policies should be put in place by the government to guarantee and enhance quality of regulatory system in Nigeria that will strengthen current level of control of corruption. The reason being that, foreign investors and capital will only flow to where the quality of regulatory system is strong and where higher income are guaranteed.
