VOlUME 05 ISSUE 01 JANUARY 2026
1Achu Anthonia, 2Okpanachi Andrew Ugbede, 3Okafor, Eric Uchenna, 4LAWAL, Faith Chidinma
1School of Business Studies and Management Technology, Federal Polytechnic Ohodo Nssuka Enugu State.
2Department of Public Administration, Kogi State Polytechnic Lokoja, Kogi State.
3Department of Banking and Finance University of Nigeria, Nsukka.
4Department of Business Education, Kogi State College of Education, Ankpa, Kogi State.
DOI : https://doi.org/10.58806/ijsshmr.2026.v5i1n15Google Scholar Download Pdf
ABSTRACT
The study analyzed the impact of government indicators on foreign direct investment inflow in Nigeria from 1999 to 2023. Variables such as regulatory quality, control of corruption, and government effectiveness capture government indicators, while the net inflow of FDI is used to capture foreign direct investment. The study employed the autoregressive distributive lag (ARDL), since it allows for variables that are stationary at the level and at first difference. The unit root test confirmed that a few variables were stationary at the level, while all variables were stationary at first difference. Also, the ARDL bound cointegration result confirmed that a long-run equilibrium relationship exists between government indicators and foreign direct investment. Furthermore, empirical findings revealed that all the government indicators, such as regulatory quality, control of corruption, and government effectiveness, assert a negative influence on foreign direct investment. Based on this, the study suggests that the government should improve the quality of the country's institutions and ensure a vigorous anti-corruption campaign, more accountability and freedom of expression, strengthen regulatory authority, and improved government efficacy through better leadership selection processes.
KEYWORDS:Government indicators, foreign direct investment, ARDL model, regulatory quality, control of corruption.
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Cite this Article:Anthonia, A., Ugbede, O. A., Uchenna, O. E., & Chidinma, L. F. (2026). Responsiveness of Foreign Direct Investment to Governance Quality. INTERNATIONAL JOURNAL OF SOCIAL SCIENCE HUMANITY & MANAGEMENT RESEARCHS, 5(1), 122-132. https://doi.org/10.58806/ijsshmr.2026.v5i1n15