Open AccessThe Impact of Corruption on Economic Growth in Nigeria
Author(s) -
Muftau Olaiya Olarinde,
Jacob Msonter Jonathan
Publication year - 2021
Publication title -
journal of asian development
Language(s) - English
Resource type - Journals
ISSN - 2377-9594
DOI - 10.52941/jad.v7i2.24
Subject(s) - cointegration , language change , economics , short run , monetary economics , human capital , inflation (cosmology) , debt , macroeconomics , external debt , government (linguistics) , development economics , economic growth , econometrics , art , linguistics , philosophy , physics , literature , theoretical physics
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.