Interactive Impact of Institutional Quality and Foreign Aid on Nigeria Economic Growth

Student: Joy Chinazaekpere Ichie (Project, 2025)
Department of Economics
University of Nigeria, Nsukka, Enugu State

Abstract

This study investigates the interactive impact of institutional quality and foreign aid on Nigeria
economic growth utilizing the Autoregressive Distributed Lag (ARDL) estimation technique with
secondary data collected over the period 2000Q1 to 2022Q4 from the World Bank’s World
Development Indicators (2022) and the World Bank’s World Government Indicators (2022). The
results show that there is a long-term negative and statistically significant impact of the
interaction between institutional quality and foreign aid on Nigeria economic growth. This could
be because institutional reforms might not be implemented in a straightforward manner in
Nigeria and foreign aid is not being channeled to the economic sector that needs it. The study,
therefore, recommends that public official performance be audited by independent auditors with
results being made accessible to the general public, the creation of an effective whistleblower
program and promoting donor coordination and joint monitoring in Nigeria will make it
possible for institutional quality and foreign aid to impact positively on the Nigerian economy.

Keywords
interactive impact institutional quality foreign nigeria economic growth
Filters
Institutions