, I explored the role institutions play in determining foreign direct investment flows. I looked specifically at developing country contexts. I looked at three separate categories of institutions: civil and political liberties, freehold property rights and non-freehold property rights, with particular attention given to the two property rights.
My findings suggest that, in the case of Nigeria, in the short run, institutions have played a role in determining foreign direct investment. I found that the curtailing of land rights, in the form of the right to manage and the right to use, may have contributed to the fall in foreign direct investment inflows.which has spread from the northern part of Nigeria to the middle belt. This has impaired the right of farmers to manage their property.
Then in 2018, the government announced plans to implement the Rural Grazing Area settlement programme to deal with conflicts between crop farmers and herders. This led to accusations that the government was grabbing land through the back door. The policy wasAll these changes had implications for both freehold and customary land rights. But did that in turn affect investment?
The study found no evidence of a long-run relationship between any of the institutional variables and foreign direct investment. Surprisingly, freehold property rights did not play a significant role. Evidence generally points in the direction of secure property rights attracting investment, because multinational companies feel better protected and commercial farmers can make long-term plans.