IDEAS home Printed from https://ideas.repec.org/a/ddj/fseeai/y2019i2p27-33.html
   My bibliography  Save this article

Social Insurance Coverage, Economic Factors and Vulnerability to Corruption in Nigeria: A Non-Linear Cointegration Approach

Author

Listed:
  • Onafalujo Akinwunmi KUNLE

    (Lagos State University, Ojo, Lagos)

Abstract

Social insurance is a critical component of social security but may not have been well defined in Nigeria. Since insurance is noted to have tacit claims on regulating human behaviour; social insurance should impel and compel public attitudes against the vulnerability of being drawn to the sin of corruption- an economic risk to society. Against this backlash, this study examined any linkage of the incidence of corruption in the Nigerian socio-economic life to the level of social insurance cover (SIC) while noting some intervening economic factors –inflation and interest rates. A non-linear ARDL technique was applied and is considered to be more predictive than my previous studies on social insurance. It is found that corruption is strongly linked to low SIC concomitantly with high inflation rate particularly from 2005 to date. Government should target innovative policies that will drive social insurance inclusion. These include attracting the informal sector to take-up micro life insurance, micro health insurance, and micro pension schemes. Government at various levels should design social interventions and financial assistance for less privilege. Monetary policy watchers should ingeniously work out low inflation regimes and low coupon fixed income instruments that moderate the interest rate spread in Nigeria to sustain SIC and reduce corruptive tendencies.

Suggested Citation

  • Onafalujo Akinwunmi KUNLE, 2019. "Social Insurance Coverage, Economic Factors and Vulnerability to Corruption in Nigeria: A Non-Linear Cointegration Approach," Economics and Applied Informatics, "Dunarea de Jos" University of Galati, Faculty of Economics and Business Administration, issue 2, pages 27-33.
    • Handle: RePEc:ddj:fseeai:y:2019:i:2:p:27-33
    DOI: https://doi.org/10.35219/eai1584040928
    as

    Download full text from publisher

    File URL: http://www.eia.feaa.ugal.ro/images/eia/2019_2/Kunle.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.35219/eai1584040928?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Cutler, David & Johnson, Richard, 2004. "The Birth and Growth of the Social Insurance State: Explaining Old-Age and Medical Insurance Across Countries," Scholarly Articles 2643658, Harvard University Department of Economics.
    2. Peter R. Hansen & Asger Lunde & James M. Nason, 2011. "The Model Confidence Set," Econometrica, Econometric Society, vol. 79(2), pages 453-497, March.
    3. Nicos A. Scordis & Yoshihiko Suzawa & Astrid Zwick & Lucia Ruckner, 2014. "Principles for Sustainable Insurance: Risk Management and Value," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 17(2), pages 265-276, September.
    4. Modigliani,Franco & Muralidhar,Arun, 2005. "Rethinking Pension Reform," Cambridge Books, Cambridge University Press, number 9780521676533.
    5. Beatrix Eugster & Rafael Lalive & Andreas Steinhauer & Josef Zweimüller, 2011. "The Demand for Social Insurance: Does Culture Matter?," Economic Journal, Royal Economic Society, vol. 121(556), pages 413-448, November.
    6. Robert Holzmann & Steen Jørgensen, 2001. "Social Risk Management: A New Conceptual Framework for Social Protection, and Beyond," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 8(4), pages 529-556, August.
    7. James E. Alt & David Dreyer Lassen, 2003. "The Political Economy of Institutions and Corruption in American States," Journal of Theoretical Politics, , vol. 15(3), pages 341-365, July.
    8. Dani Rodrik, 1998. "Why Do More Open Economies Have Bigger Governments?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 997-1032, October.
    9. J. Francois Outreville, 2014. "Risk Aversion, Risk Behavior, and Demand for Insurance: A Survey," Journal of Insurance Issues, Western Risk and Insurance Association, vol. 37(2), pages 158-186.
    10. David M. Cutler & Richard Johnson, 2004. "The Birth and Growth of the Social Insurance State: Explaining Old Age and Medical Insurance Across Countries," Public Choice, Springer, vol. 120(1_2), pages 87-121, July.
    11. Holzmann,Robert & Jorgensen,Steen Lau, 2000. "Social risk management : a new conceptual framework for social protection and beyond," Policy Research Working Paper Series 21314, The World Bank.
    12. Mares, Isabela, 2004. "Economic Insecurity and Social Policy Expansion: Evidence from Interwar Europe," International Organization, Cambridge University Press, vol. 58(4), pages 745-774, October.
    13. Adserà , Alícia & Boix, Carles, 2002. "Trade, Democracy, and the Size of the Public Sector: The Political Underpinnings of Openness," International Organization, Cambridge University Press, vol. 56(2), pages 229-262, April.
    14. Schwab, Daniel & Werker, Eric, 2018. "Are economic rents good for development? Evidence from the manufacturing sector," World Development, Elsevier, vol. 112(C), pages 33-45.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. María Franco Chuaire & Carlos Scartascini & Mariano Tommasi, 2017. "State capacity and the quality of policies. Revisiting the relationship between openness and government size," Economics and Politics, Wiley Blackwell, vol. 29(2), pages 133-156, July.
    2. Nikolov, Plamen & Adelman, Alan, 2019. "Do private household transfers to the elderly respond to public pension benefits? Evidence from rural China," The Journal of the Economics of Ageing, Elsevier, vol. 14(C).
    3. Mohajan, Haradhan, 2013. "Food, Agriculture and Economic Situation of Bangladesh," MPRA Paper 54240, University Library of Munich, Germany, revised 18 Aug 2013.
    4. Kevin Williams, 2021. "Does national income mediate the relationship between trade and government size?," Empirical Economics, Springer, vol. 61(6), pages 3029-3057, December.
    5. Nikolov, Plamen & Hossain, Md Shahadath, 2023. "Do pension benefits accelerate cognitive decline in late adulthood? Evidence from rural China," Journal of Economic Behavior & Organization, Elsevier, vol. 205(C), pages 594-617.
    6. Anne T. Kuriakose & Rasmus Heltberg & William Wiseman & Cecilia Costella & Rachel Cipryk & Sabine Cornelius, 2013. "Climate-Responsive Social Protection," Development Policy Review, Overseas Development Institute, vol. 31, pages 19-34, November.
    7. Rangan Gupta & Lardo Stander & Andrea Vaona, 2023. "Openness and growth: Is the relationship non‐linear?," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(3), pages 3071-3099, July.
    8. Perotti, Enrico & Schwienbacher, Armin, 2009. "The political origin of pension funding," Journal of Financial Intermediation, Elsevier, vol. 18(3), pages 384-404, July.
    9. Skoufias, Emmanuel, 2007. "Poverty alleviation and consumption insurance: Evidence from PROGRESA in Mexico," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 36(4), pages 630-649, August.
    10. Richard P.C. Brown & Eliana V. Jimenez, 2008. "Remittances and Subjective Welfare in a Mixed-Motives Model: Evidence from Fiji," Discussion Papers Series 370, School of Economics, University of Queensland, Australia.
    11. Maxwell, Daniel & Webb, Patrick & Coates, Jennifer & Wirth, James, 2010. "Fit for purpose? Rethinking food security responses in protracted humanitarian crises," Food Policy, Elsevier, vol. 35(2), pages 91-97, April.
    12. World Bank, 2001. "Risk Management in South Asia : A Poverty Focused Approach," World Bank Publications - Reports 15449, The World Bank Group.
    13. Vincenzo Galasso & Paola Profeta, 2018. "When the State Mirrors the Family: The Design of Pension Systems," Journal of the European Economic Association, European Economic Association, vol. 16(6), pages 1712-1763.
    14. World Bank, 2012. "Resilience, Equity, and Opportunity [Capacidad de recuperación, equidad y oportunidades]," World Bank Publications - Reports 12648, The World Bank Group.
    15. Neil Reeder, 2014. "New development: UK government ambitions for a preventative agenda-- fact or 'futurewash'?," Public Money & Management, Taylor & Francis Journals, vol. 34(1), pages 71-74, January.
    16. Muhammad Zakaria & Samreen Shakoor, 2011. "Relationship Between Government Size and Trade Openness: Evidence from Pakistan," Transition Studies Review, Springer;Central Eastern European University Network (CEEUN), vol. 18(2), pages 328-341, December.
    17. Julia Ngozi Chukwuma, 2022. "Global ideas of welfare and the narrowing scope of social policy," Working Papers 252, Department of Economics, SOAS University of London, UK.
    18. World Bank, 2005. "Afghanistan - Poverty, Vulnerability, and Social Protection : An Initial Assessment," World Bank Publications - Reports 8522, The World Bank Group.
    19. Schulze Buschoff, Karin, 2007. "Self-employment and social risk management: Comparing Germany and the United Kingdom," Discussion Papers, Research Unit: Labor Market Policy and Employment SP I 2007-103, WZB Berlin Social Science Center.
    20. Alena Kimakova, 2009. "Government size and openness revisited: the case of financial globalization," Kyklos, Wiley Blackwell, vol. 62(3), pages 394-406, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ddj:fseeai:y:2019:i:2:p:27-33. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gianina Mihai (email available below). General contact details of provider: https://edirc.repec.org/data/fegalro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.