Regime Types and Economic Performance: An Empirical Assessment of Economic Performance Across Political Regimes in Nigeria.1966-2015
DOI:
https://doi.org/10.54536/ajds.v4i2.8002Keywords:
Central Bank of Nigeria, Economic Performance, National Bureau of Statistics, Nigeria, Regime TypesAbstract
Economic performance between political regimes in Nigeria has been a controversial debate between two schools of thought. Empirical findings on economic performance between democratic and military regimes for over four decades is limited. This study was designed to empirically investigate the impact of political regimes on economic performance in Nigeria. Data were sourced from the Central Bank of Nigeria Statistical Bulletin and National Bureau of Statistics Annual Abstract of Statistics Performances by the two regimes types were averaged for each indicator and compared. Data were analyzed using t-test at p≤0.05. The average of the indicators under military regime were: economic growth rate ((x) ̅ = 4.4% ±7.092297), inflation rate ((x) ̅= 27.3% ±21.13912), capital formation ((x) ̅ = 52314.68Nb ± 61977.80), exchange rate ((x) ̅ =9.5 ±9.303599) N/USD, interest rate ((x) ̅ = 15.7% ±7.409205), unemployment rate ((x) ̅ = 3.3% ±1.947), trade balance ((x) ̅ =72.3Nm ± 127.6335) and life expectancy ((x) ̅ = 46.6yrs ±1.288293). For democratic regime, they were: economic growth rate ((x) ̅ = 5.0% ±6.071766), inflation rate ((x) ̅=12.3% ±4.719680), capital formation ((x) ̅ =26841.70Nb ±2.772914), exchange rate ((x) ̅ = 106.6 N/USD ±64.02058), interest rate ((x) ̅ = 16.2% ±4.802802) unemployment rate ((x) ̅ = 13.6% ±7.6336), trade balance ((x) ̅ = 3780.857Nm ± 4175.521) and life expectancy ((x) ̅= 49.4yrs ± 2.556885). The t-test results were: exchange rate (t = 7.748), trade balance (t = 4.313), inflation rate (t = 2.701), life expectancy (t = 8.263) and unemployment rate (t = 6.698). Military regime did better than the democratic regime in overall economic performance. Regime type does don’t matter but, a responsible leadership with good policies that can produce strong economic performance.
Downloads
References
Acemoglu, D. & Robinson, J. A. (2006). Economic origins of dictatorship and democracy. Cambridge University Press.
Acemoglu, D., Johnson, S. and Robinson, J. A. (2002). Reversal of fortune: geography and institutions in the making of the modern world income distribution. The Quarterly Journal of Economics, 117(4), 1231 1294. http://doi.org/10.1162/003355302320935025.
African Economic Outlook. (2015). African Journal of Economic Review. African development bank, organization for economic co-operation and development, united nations development programme.
Aghion, P., Alesina, A., & Trebbi F. (2004). Endogenous political institutions. Quarterly Journal of Economics, 119(2), 565-611. http://www.jstor.org/stable/25098694
Ake, C. (2003). The feasibility of democracy in Africa. Dakar. . council for the development of social science research in africa.
Bardhan, P. (2002). Decentralization of governance and development. Journal of Economic Perspectives, 16(4), 185-205. http:// doi: 10.1257/089533002320951037
.Barro, R. (1996a). Democracy and growth. Journal of Economic Growth, 1, 1-27. http://www.jstor.org/stable/40215879.
Bueno, B.M. & Downs. G. (2005). Development and democracy. Foreign Affairs, 84(5), 77-86. http://www.jstor.org/stable/20031707.
Chin-en, W. 2004. Regime types, structural factors, and economic performance. University of Michigan.
Clague, C., Keefer, P. Knack, S. & Olson, M., (1997). Property and contact rights in autocracies and democracies. World Bank.
De Schweinitz, K. (1959). Industrialization, labor controls, and democracy. Economic Development and Cultural Change, 7(4). 385-404. http:// dio:10.1086/449812.
Dick, William G. (1974). Authoritarian versus non-authoritarian approaches to economic development. Journal of Political Economy, 82(4). 817-27. http:// doi: 10.1086/260236.
Dixit, A. & Londregan, J. (1995). Redistributive politics and economic efficiency. American Political Science Review, 89, 856-66. https://doi.org/10.2307/2082513.
Doyle, M. W. (2005). Three pillars of the liberal peace. The American Political Science Review, 99(3), 463-466. http:// doi:10.1017/S0003055405051798.
Elgstrm, O. (2002). Development and democracy: what have we learned and how. Rutledge Publishers.
Fernandez, R. & Rodrik, D. (1989). Resistance to reform: Status quo bias in the presence of individual-specific uncertainty. American economic review.
Folch, A.E. (2013). Accountable for what? regime types, performance, and the fate of outgoing dictators,1946–2004. Democratization, 20(1), 160-185. http:// doi:10.1080/13510347.2013.738866.
Freedom House (2012). Freedom in the world. The annual survey of political rights and civil liberties. Heritage foundation.
Fukuyama, F. (1993). The end of history and the last man. Free press.
Galenson (1959). Pathways to democracy: Political economy of democratic transitions. Eds. Hollifield, J.F., Jilson, C.C. Rutledge publishers.
Glaeser, E.L., La Porta, R., Lopez-de-Silanes, F. (2004). Do institutions cause growth? Journal of Economic Growth 9, 271–303. https://doi.org/10.1023/B:JOEG.0000038933.16398.
Haans, J. & Sturm. J. (2003). Does more democracy lead to greater economic freedom? New evidence for developing countries. European Journal of Political Economy, 19(3), 547-563. https://doi.org/10.1016/S0176-2680(03)00013-2.
Haggard, S. (1990). Pathways from the periphery: the politics of growth in the newly industrializing countries, Cornell University press.
Hewlett, S. A. (1980). The cruel dilemmas of development: twentieth century Brazil. New York. Basic Books.
Hollifield, J. & Jilson, C. (2014). Pathways to democracy: the political economy of democratic transitions. Routledge.
Huntington, S. (1991). The third wave: democratization in the late twentieth century. Norman, economic review.Huntington, S. P. & Nelson, J.M. (1976). No easy choice: Political participation in developing countries. Harvard university press.
Huntington, S.P. (1968). Political order in changing societies. New Haven: Yale university press.inglehart, R. (1997). Modernization and post-modernization: cultural, economic and political change in 43 Societies, princeton university press
Jamo, A. I. (2013). Democracy and development in nigeria: Is there a link? Arabian Journal of Business and Management Review. 3(3), 85-94. htpp:// doi:10.12816/0016434.
Khan, M. H. (2007). Governance, economic growth and development since 1960s. Economic and Social Affairs Working Papers No.54. Retrieved from https://www.researchgate.net/publication/23694235 on 23/02/2025.
Krieckhaus, J. (2004). The regime debate revisited: a sensitivity analysis of democracy’s economic effect. British Journal of Political Science Vol.34, No.4, 635–655. http://www.jstor.org/stable/4092293.
Lerner, D. (1958). The passing of traditional society, Glencoe, IL: Free Press.
Lipset, S. M. (1959). Democracy and working-class authoritarianism. American Sociological, 24, 482-501. http:// dio:10.2307/2089536.
National Bureau of Statistics. (2010). Nigerian poverty profile report. Abuja. NBS.
North, D.C. & Weingast, R.B. (1989). Evolution of institutions governing public choice in seventeenth-century England. The Journal of Economic History, 49(4),803-832. dio: 10.1017/S0022050700009451.
Pel, M. (1999). Economic institutions, democracy and development. a paper presented at the conference on democracy and development, world bank conference, Korea. Retrieved from htpp/www.carnegiendowment.org/publication. 13th June 2013.
Pitlik, H. (2007). A race to liberalization? diffusion of economic policy reform among OECD-economies. Public Choicer, 132 (1), 159-178. https://doi.org/10.1007/s11127-006-9140-y.
Przeworski, A & Gandhi, J. (2007). Authoritarian institutions and the survival of autocrats. Comparative Political Studies, 40(11). https://doi.org/10.1177/0010414007305817.
Przeworski, A. Alvarez, M. Cheibub, J. & Limongi, F. (2000). Democracy and development: political institutions and well-being in the world. New York: Cambridge University Press.
Przeworski, A., & Limongi, F. (1997). Political regimes and economic growth. Journal of Economic Perspectives, 7(3), 51–69. https://doi.org/10.1257/jep.7.3.51
Quinn, D.P. & Wolley, J. (2001). Democracy and national economic performance: the preference for stability. American Journal of Political Science, 634-657.Review, 634-657. https://doi.org/10.2307/2669243.
Roa, V. (1984). Democracy and economic development. Studies on Comparative International Development, 19(4), 67-81. http:// doi:10.1007/BF02743750.
Rodrik, D. (2000). Participatory politics, social cooperation, and economic stability, American Economic Review, Papers and Proceedings, 90, 140-144. http:// doi:10.1257/aer.90.2.140.
Sah, R. (1991). Fallibility in human organizations and political systems. Journal of Economic Perspectives,5(2), 67–88. http:// doi:10.1257/jep.5.2.67.
Sen, A. (1999). Commodities and capabilities. Oxford: Oxford University Press.
Sen, A. (2000). Development as Freedom. Anchor Books.
Siegle, J. T., Michael, M. W., & Morton H. H. (2004). Why democracies excel, Foreign Affairs, 83(5), 57-71. https:// doi:10.2307/20034067.
Sloan, J. & Tedin, K.T. (1987). The consequence of regime type for public policy outputs. Comparative Political Studies, 20, 98-124. https://doi.org/10.1177/0010414087020001005.
Tan, C. (2015). Lee Kuan Yew Leaves a Legacy of Authoritarian Pragmatism. Retrieved from http://www.theguardian.com/world/2015/mar/23/lee-kuan-yews-legacy-of-authoritarian pragmatism-will- serve-singapore-well on 12/07/2017.
Vanhannen, T. (1997). Prospects of democracy: a study of 172 countries, London: Rutledge.
Wrights, Q. (1942). A study of war. University of Chicago Press.
Downloads
Published
Issue
Section
License
Copyright (c) 2026 E. C. Anabiri
This work is licensed under a Creative Commons Attribution 4.0 International License.
