Corruption and Economic Growth in Nigeria: 1986 -2007
AbstractAbstract The World Bank (2000) asserts that corruption is the single greatest impediment to economic growth in third world countries. This study was set out to investigate the impact of corruption on economic growth in Nigeria from 1986 to 2007. A Barro-type endogenous growth model was adopted and reconditioned to suit the purpose of the paper. The Engle-Granger (1987) cointegration and error correction mechanism (ECM) techniques were employed to unit root properties of the variables, their long run relationship and to determine values of long run parameters. The results show that corruption exerts significant direct effect on economic growth and indirectly via some critical variables examined by the paper which include Government Capital Expenditure, Human Capital Development and Total employment. The paper discovers that about 20% of the increase in government capital expenditure ends up in private pockets. It is, therefore, recommended that the government should consolidate on its efforts to fight corruption to a standstill in the country.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 12504.
Date of creation: 10 Oct 2008
Date of revision: 07 Dec 2008
corruption; economic growth; cointegration;
Find related papers by JEL classification:
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
- H52 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Education
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