Corruption and Economic Growth in Nigeria: 1986 -2007

Shehu Usman Rano ALIYU and Akanni Oludele Elijah

MPRA Paper from University Library of Munich, Germany

Abstract: Abstract The World Bank (2000) asserts that corruption is the single greatest impediment to economic growth in third world countries. This study was set out to investigate the impact of corruption on economic growth in Nigeria from 1986 to 2007. A Barro-type endogenous growth model was adopted and reconditioned to suit the purpose of the paper. The Engle-Granger (1987) cointegration and error correction mechanism (ECM) techniques were employed to unit root properties of the variables, their long run relationship and to determine values of long run parameters. The results show that corruption exerts significant direct effect on economic growth and indirectly via some critical variables examined by the paper which include Government Capital Expenditure, Human Capital Development and Total employment. The paper discovers that about 20% of the increase in government capital expenditure ends up in private pockets. It is, therefore, recommended that the government should consolidate on its efforts to fight corruption to a standstill in the country.

Keywords: corruption; economic growth; cointegration (search for similar items in EconPapers)
JEL-codes: H50 O50 H52 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-afr
Date: 2008-10-10, Revised 2008-12-07
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://mpra.ub.uni-muenchen.de/12504/ original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: http://EconPapers.repec.org/RePEc:pra:mprapa:12504

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany
Address: Schackstr. 4, D-80539 Munich, Germany
Contact information at EDIRC.
Series data maintained by Ekkehart Schlicht ().