Impact of Corruption on the Growth of the Nigerian Economy-1960-2012: Error Correction Mechanism (ECM)

Shuaib, I. M.; Augustine, Ekeria O.; Frank, Ogedengbe A.

doi:10.9734/jsrr/2016/15329

Cited by 3 publications

(4 citation statements)

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“…The effect of corruption on human development was negative but not statistically significant. Similar result was reported by Shuaib et al (2016). However, the result was contrary to the findings of Akcay (2006), Ahmad andSaleem (2014), andOrtega et al (2014).…”

Section: Effects Of Corruption and Government Effectiveness On Human supporting

confidence: 72%

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Akinbode¹,

Olabisi²,

Adegbite³

et al. 2020

JADE

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Aside economic factors causing low human development which have been extensively studied in literature, the implications of high level of corruption and weak governance prevalent in sub- Saharan African (SSA) countries have not been explored. The study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset. Results indicated that lagged human development index (P<0.01), government effectiveness (P<0.05), economic growth rate (P<0.1) and government health spending (P<0.1) had significant positive effect on human development while corruption and its interaction with government effectiveness did not. The results of Arrelano-Bond test of first order autocorrelation and second order autocorrelation of error term as well as the Sargan test and Hansen J test for validity of instrumental variables confirmed the validity of the model. The robustness of the estimation was established as the coefficient of the lagged dependent variable fell between the values in the fixed effect and pooled ordinary least square regression. The study recommended retraining and reorientation of government employees towards the mindset of effective service delivery and strong political will to achieve it, diversification of SSA economies alongside other growth stimulating policies such as reduced lending interest rate on loans meant for the real sector, improvement in the ease of doing business, improved funding of the health sector and proper monitoring of activities in the public service by concerned agencies to curb corruption where it is present.

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Section: Effects Of Corruption and Government Effectiveness On Human supporting

confidence: 72%

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Akinbode¹,

Olabisi²,

Adegbite³

et al. 2020

JADE

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“…Corruption, Institutional Quality and Economic Performance Nexus: There is a conflicting report on the nexus between corruption, institutional quality and economic performance in the developed countries and developing economies to which Nigeria belongs. Some of the empirical studies show that corruption and institutional quality have a negative effect on economic performance [18][19][20][21][22][23] as asserted by Rock and Anoruo [24,25]. Nevertheless, there have been reports of the positive effect of corruption and institutions on economic performance in some other studies [26][27][28][29][30].…”

Section: Empirical Literaturementioning

confidence: 99%

“…One of the schools of thought embraces the fact that corruption leads to public sector efficiency and has a positive influence on economic performance because approval of projects are speedily given when bribes are paid to bureaucrats [26][27][28][29][30]. The second school of thought holds that corruption impede economic performance, increases transaction costs and reduces profits in business [18][19][20][21][22][23].…”

Section: Theoretical Foundationmentioning

confidence: 99%

Does Corruption and Institutional Quality Impede Economic Performance in Nigeria?

Bakare

Ozegbe

Salami

2023

JEMT

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This study examined the nexus between corruption, institutional quality and economic performance with the motivation to determine the extent to which economic performance is impeded by corruption and institutional quality in Nigeria. The autoregressive distribution lag (ARDL) technique was employed to test the short-run and long-run relationship among the variables of interest. The data used for the analysis were obtained from the World Development Indicators and the Central Bank of Nigeria’s Statistical Bulletin for the period 1970 to 2020. The study found that corruption has a negative and significant impact on economic performance in the long-run. In contrast, institutional quality was found to have a negative but insignificant effect on economic performance. This implies that despite the establishment of institutional structures and enactment of stringent laws to curb the menace of corruption, Nigeria still witnesses a decline in economic performance. As such, Nigeria has weak institutions and regulations to fight corruption. Contrastingly, the study revealed that human capital, trade openness and the working population exerted positive and significant impacts on economic performance. By implication, the Nigerian economy reacts positively to changes in human capital development, trade openness and working population in the long-run. This suggests that, with the availability of appropriate policies and resources, human capital development, trade openness, and working population growth have the potential to enhance Nigeria’s economic performance.

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“…The study, therefore, concludes that corruption has negatively affected economic growth in Nigeria under the period covered by the study. Shuaib et al (2016) examined the impact of corruption on the growth of the Nigerian economy using time series data from 1960 to 2012. From the results of the findings, it was discovered that corruption has an inverse relationship with the growth of an economy.…”

Section: Conceptual and Empirical Reviewsmentioning

confidence: 99%

The Impact of Corruption on Economic Growth in Nigeria

Olarinde¹,

Jonathan²

2021

jad

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This study empirically analyses the impact of corruption on economic growth in Nigeria, using time series data for the period 1980-2015 analyzed through the ARDL technique. The result of the Bound test confirmed the existence of Cointegration among the variables. The ARDL results revealed that corruption has a significant negative influence on economic growth both in the short run and long run. It was further confirmed that external debt, agricultural output, and human capital development positively impact growth while FDI and inflation rate endanger growth, in both the short and long run. The result of the interacting term revealed the damaging influence of corruption on the positive impact of human capital expenditure and external debt on economic growth. Based on the findings of the study, it is obvious that achievement of growth that is sustainable will remain elusive in a corrupt environment. The study, therefore recommends that government should strengthen the activities of the anti-corruption agencies in Nigeria to reduce the rate of corruption.

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Impact of Corruption on the Growth of the Nigerian Economy-1960-2012: Error Correction Mechanism (ECM)

Cited by 3 publications

References 0 publications

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Does Corruption and Institutional Quality Impede Economic Performance in Nigeria?

The Impact of Corruption on Economic Growth in Nigeria

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