Do De Jure Institutions Matter for Foreign Direct Investment Flows in Nigeria?

In this study, the role of institutions as a determining factor in foreign direct investment (FDI) attraction into a developing country such as Nigeria is investigated. The study makes use of recently constructed measures of institutions' quality that cover three separate categories: civil and political liberties, freehold property rights and non-freehold (Customary) property rights, with particular attention given to the two property rights. The findings suggest that, in the case of Nigeria, in the short run, institutions do play a role in determining FDI attraction. In addition, the study highlights the need to unbundle institutions, given that specific aspects of freehold property rights have a positive and significant impact on FDI, even though freehold property rights as whole does not have a significant impact.