Corruption and Economic Growth in Nigeria: A Cointegration (FM-OLS) Approach

Raymond Adegboyega
Additional contact information
Raymond Adegboyega: Olabisi Onabanjo University, Ago Iwoye, Nigeria

Annals of the University of Petrosani, Economics, 2017, vol. 17, issue 1, 5-18

Abstract: Corruption as one of major factors which have slow down economic growth and development in Nigeria has also deterred political and economic reforms which have undermined efforts to improve the living standards of Nigerians and to foster democratic governance. It is evident that the majority of Nigerians see corruption as a serious problem today and most public agencies are rated low in terms of honesty and integrity. Consequently, the factors that drive corruption become pertinent. So, this study examined the effect of corruption on economic growth in Nigeria using fully modified OLS regression technique. Our empirical analysis confirms that in the long run, corruption is negatively related to economic growth which retards economic growth directly and indirectly by increasing poverty and restricting investment. The study recommends among other strategies the implementation of stiff penalties such as stringent punishment for those convicted of corrupt acts in our law courts, promotion of poverty reduction programmes and an enabling environment for inward investments.

Keywords: corruption; economic growth; FDI; transparency international; trade openness (search for similar items in EconPapers)
JEL-codes: F10 O00 O40 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.upet.ro/annals/economics/pdf/2017/p1/Adegboyega.pdf (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: https://EconPapers.repec.org/RePEc:pet:annals:v:17:y:2017:i:1:p:5-18

Access Statistics for this article

More articles in Annals of the University of Petrosani, Economics from University of Petrosani, Romania
Bibliographic data for series maintained by Imola Driga ().