Military and Democratic Rules In Nigeria (1981-2016): Which Has Greater Impact?

Abstract

Background: In recent years, many countries of the world turn away from military system of government to embrace democracy. Some studies have argued that good democracy is not a by-product of development but a stepping stone while others assert that the military is seen as a modernizing agent and a vigorous champion of change and development in some countries. This study therefore tried to analyse the contributions of the military and democratic political systems to the growth of the Nigerian economy between 1981and 2016. Method: Secondary data were collected via CBN statistical bulletin and the World Bank. Dummy variable analysis using Ordinary Least Squares technique was employed. Real Gross Domestic Product (LGDP) was used as the dependent variable with Unemployment rate (UNMP), Investment Rate (LINVST), Inflation (INFL), Broad Money Supply (LM2) as independent variables with the dummies. Unit root test, Johanson's cointegration test and the Engle Granger 2-step tests were carried out. Finding: The regression result showed that the military government contributed significantly to the growth of the Nigerian economy more than the democratic government by 35.98% even though the democratic government had more significant investment rate (8.16%). Conclusion: The study concludes that democratic government should be adopted and made more efficient in other to materialise the high investment rate accrued to it through a strategic corruption fight and creation of politically and economically friendly environment.