Institutional Quality and Output Performance in Nigeria

  • Patrick OLOGBENLA
Keywords: Institutional Quality, Output Performance, Long run Impact, Short run Impact


This study investigates the impact of institutional quality on output performance in Nigeria using annual secondary time series data extracted from World Bank WGI database and the Central Bank of Nigeria from 1996-2021. Descriptive analysis, correlation analysis, unit root test, lag selection test, F-bounds cointegration test, and autoregressive distributed lag (ARDL) model were employed to analyze the time series data with output performance (proxied by the gross domestic product growth rate) as dependent variable, while institutional quality, gross fixed capital formation, labour force growth rate, foreign direct investment, inflation rate, and financial development were incorporated as independent variables. Findings show that all the explanatory variables except the gross fixed capital formation were significant in the long run. However, only the institutional quality and inflation rate exhibit negative impact on economic growth, while all the other explanatory variables exert positive impact on economic growth along the long run horizon. With regards to the short run, only the institutional quality, labour force growth rate, and financial development have significant impact on economic growth. Furthermore, only institutional quality and inflation rate exhibit negative relationship with economic growth, while the other explanatory variables exert positive relationship with output performance along the short run horizon. Consequently, the study recommended that the Nigerian government should adopt policies and strategies that can improve the quality of institutions in the country.


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How to Cite
OLOGBENLA, P. (2023). Institutional Quality and Output Performance in Nigeria. European Journal of Science, Innovation and Technology, 3(6), 356-374. Retrieved from