Journal of
Economics and International Finance

  • Abbreviation: J. Econ. Int. Finance
  • Language: English
  • ISSN: 2006-9812
  • DOI: 10.5897/JEIF
  • Start Year: 2009
  • Published Articles: 312

Article in Press

INSTITUTIONAL QUALITY, TECHNOLOGY CHOICES AND PRODUCTIVE EMPLOYMENT GROWTH: EVIDENCE FROM NIGERIA

Gideon Olugbenga Olanrewaju, Sheriffdeen A. Tella and Bolaji Adesola Adesoye

  •  Received: 22 January 2019
  •  Accepted: 15 March 2019
The study examines the relationships between institutional, financial and broad-based productive growth variables employing the Bounds testing approach to cointegration and error correction model within an autoregressive distributed lag (ARDL) framework. The annual secondary time series data from 1998 to 2017 were used and mainly sourced from well trusted entities. The results of the analysis revealed that composite financial inclusion index, indicator of institutional quality average, the development strategy’s choice indicator (TCI) though wrongly signed, the interacted institutional and financial inclusion variable were positively and significantly related to the real GDP per person employed. On the other hand, the composite variable of institutional quality and inclusive growth (RGDPEGEFe) negatively but strongly significantly impacted on the broad-based output growth in Nigeria. This shows that while the effects of institutional quality could vary widely in an economy, institutional quality appears to be the dominant driving force behind broad-based productive and employment growth. Thus, effort to make growth inclusive in a resource-rich developing country like Nigeria unarguably lies within the purview of quality institutional governance to formulate and implement productive employment growth-oriented policies that are compatible with the society’s resources endowment and developmental goals.

Keywords: Institutional quality, Financial inclusion, Technology choice index, Broad-based productive growth and Employment