CORRUPTION AND ECONOMIC GROWTH ANAL YSIS IN NIGERIA: AN ARDLMODEL APPROACH
Authors:
ONAKOYA Adegbemi
Publication Type: Journal article
Journal: Ae-funai Journalof Accounting, Business And Finance
ISSN Number:
0
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Abstract
The study examined the effect of corruption on the economic growth of Nigeria. It utilized time series data set from 1983 to 2019. The result of the unit root preliminary tests revealed mixed integration at level and first difference necessitating the deployment of the Autoregressive Distributive lag (ARDL) method in the short and long-run regression estimations. The findings revealed the absence of nexus between corruption and economic growth in Nigeria. On the long-run however, positive relationship existed in Nigeria at 5% level of significance. The result of the Granger causality test also suggested corruption did not granger cause economic growth but the other way in Nigeria. A uni-directional relationship also existed between growth rate in oil contribution to real GDP and corruption perception index. The government is, enjoined to reengineer its policies and procedures in order to simplify its bureaucracy and remove operational red tapes. The top management of business concerns should engage in more transparent treatment of the disguised and hidden costs of doing business.