FOREIGN DIRECT INVESTMENT, INSTITUTIONAL QUALITY AND MANUFACTURING PERFORMANCE IN NIGERIA: EVIDENCE FROM AN ARDL INTERACTION MODEL

Authors

Keywords:

Foreign direct investment, Institutional quality, Manufacturing performance, ARDL, Nigeria

Abstract

This study highlighted the ongoing underdevelopment of the manufacturing sector of Nigeria despite its attempt to attract foreign direct investment (FDI), and that the failure of the institutions in Nigeria might have been the reason why foreign capital did not offer the optimum benefits. It analyzed if the quality of institutions modified the association of FDI and manufacturing performance, which was captured by the share of manufacturing value added in GDP. Annual data were analyzed from the period 1996-2022 using an autoregressive distributed lag interaction framework. The results confirmed long-run relationship and showed that institutional quality had important direct effects on manufacturing performance. FDI and rule of law were positively significant in the long run, while the interaction terms were individually insignificant, indicating weak evidence of persistent long-run moderation. The study suggested more effective enforcement of contracts and greater policy stability and institutional reforms to effectively promote productive FDI

Dimensions

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Published

2026-10-21

How to Cite

Ekwilo, E. O., Idachaba, B. O., Noah, E., & Yusuf, R. O. (2026). FOREIGN DIRECT INVESTMENT, INSTITUTIONAL QUALITY AND MANUFACTURING PERFORMANCE IN NIGERIA: EVIDENCE FROM AN ARDL INTERACTION MODEL. FUDMA Journal of Business Management, 4(2), 502-518. https://doi.org/10.70882/fjbm.2026.v4i2.151

Issue

Vol. 4 No. 2 (2026): FUDMA Journal of Business Management

Section

Articles
Copyright & Licensing

Copyright (c) 2026 Esther O. Ekwilo, Benjamin O. Idachaba, Ezekiel Noah, Rosemary O. Yusuf (Author)

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

Ekwilo, E. O., Idachaba, B. O., Noah, E., & Yusuf, R. O. (2026). FOREIGN DIRECT INVESTMENT, INSTITUTIONAL QUALITY AND MANUFACTURING PERFORMANCE IN NIGERIA: EVIDENCE FROM AN ARDL INTERACTION MODEL. FUDMA Journal of Business Management, 4(2), 502-518. https://doi.org/10.70882/fjbm.2026.v4i2.151

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