IJEBMR
ISSN: 2456-7760

Title:
CORRUPTION AND ECONOMIC GROWTH IN NIGERIA, (1996 - 2017)

Authors:
OLASEHINDE Ireti Olamide, WAYA Abayomi Folorunso & ADESANMI OriolaOyewole, Nigeria

Abstract:
The study empirically assessed the relationship between corruption and economic growth in Nigeria within the period covered (1996 - 2017). By regressing the model specification, Augmented Dickey-Fuller (ADF) unit root test, Johansen co-integration analysis, vector error correction estimation test, Pairwise Granger causality and Chi-square Wald test were used. From the results obtained, it is obvious that there is negative but significant relationship between corruption and economic growth in Nigeria. Secondly, all the variables are stationary at 1st difference and have two (2) co-integration equations at none equation and at most one (1) equation. After running the VECM, it is clear that GDP has negative significant relationship on corruption, and short-run dynamic impact of GDP on corruption is confirmed in Nigeria through Chi-square Wald test. Also, it shows that it is only poverty that granger causes capital formation among the variables of interest in the study. The major policy recommendations for the study include; corruption should be included in school syllabus, capital punishment should await whosoever involves in corruption henceforth as confirmed by the commissions in charge of corruption and its investigation; anyone involved in corruption in the past must be prosecuted and be given life imprisonment after refunding the money in their possession; and whatever amount recollect from the corrupt citizens be published and use judiciously for the development of our society.

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