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External Shocks, Institutional Quality, and Macroeconomic Performance in Nigeria

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  • S. S. Abere
  • T. O. Akinbobola

Abstract

The study examines the relative contributions of external shocks and institutional quality to macroeconomic performance in Nigeria, using Structural Vector Autoregressive (SVAR) approach. The study establishes the dominance of the relative contributions of external shocks measures over institutional quality to macroeconomic performance in the country. Even though the dominance of terms of trade and foreign aid is highlighted, the role of institutional quality is equally important as it also has significant positive effect on performance. The study concludes that both external shocks and institutional quality play significant roles, and hence, posits the existence of favorable institutional environments as a panacea to successfully absorbing the influence of external shocks which are exogenous to the economy.

Suggested Citation

  • S. S. Abere & T. O. Akinbobola, 2020. "External Shocks, Institutional Quality, and Macroeconomic Performance in Nigeria," SAGE Open, , vol. 10(2), pages 21582440209, May.
    • Handle: RePEc:sae:sagope:v:10:y:2020:i:2:p:2158244020919518
    DOI: 10.1177/2158244020919518
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    2. Enoch Kwaw-Nimeson & Ze Tian, 2023. "Institutional Quality, Foreign Direct Investment, and Regional Integration: Empirical Evidence From CEN-SAD," SAGE Open, , vol. 13(1), pages 21582440221, January.
    3. Terungwa Paul Joseph Jato, Ph.D & Joyce Mbakosun Ayaga, 2022. "External Economic Shocks and Monetary Policy Tools in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 6(7), pages 110-119, July.
    4. Adegboye Abidemi C. & Alao-Owunna Ifeoluwa & Bank-Ola Folake R., 2022. "Macroeconomic Shocks and Employment in sub-Sharan Africa: Do Labour Market Institutions Matter?," Zagreb International Review of Economics and Business, Sciendo, vol. 25(2), pages 97-118.
    5. Rodion V. Balakin & Yuliya A. Steshenko, 2024. "Review of Approaches to Assessing the Impact of New Challenges on the Economy and Certain Aspects of Taxation," Finansovyj žhurnal — Financial Journal, Financial Research Institute, Moscow 125375, Russia, issue 3, pages 68-85, June.

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