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Does Corruption Matter For Nigeria Long Run Growth: Evidence From Cointegration Analyses And Causality Tests?

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  • Olubanjo Taiwo Ajilore
  • D.O. Elumilade

Abstract

The study examines the relationship between corruption and economic growth in the Nigeria economy for sample periods ranging from 1970 to 2004. Johansen’s maximum likelihood cointegration techniques and Granger causality tests were applied to annual, national-level data. The results of this study indicate that corruption is cointegrated with Economic growth in Nigeria. In addition, for Nigeria, the study found a one-way causality from corruption to economic growth. These findings provide a statistical confirmation of unfavorable effects of corruption on economic performance as widely hypothesized in economic literature. For policy, the results of this study suggest that the current anti corruption drive in the country should be more vigorously pursued as this result indicated that it has important consequence on economic growth aspirations of the country.

Suggested Citation

  • Olubanjo Taiwo Ajilore & D.O. Elumilade, 2007. "Does Corruption Matter For Nigeria Long Run Growth: Evidence From Cointegration Analyses And Causality Tests?," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 1(2), pages 69-79.
    • Handle: RePEc:ibf:ijbfre:v:1:y:2007:i:2:p:69-79
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    References listed on IDEAS

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    Cited by:

    1. Ho, Sy-Hoa & OUEGHLISSI, Rim & EL FERKTAJI, Riadh, 2019. "The dynamic causality between ESG and economic growth: Evidence from panel causality analysis," MPRA Paper 95390, University Library of Munich, Germany.
    2. Huang, Chiung-Ju, 2016. "Is corruption bad for economic growth? Evidence from Asia-Pacific countries," The North American Journal of Economics and Finance, Elsevier, vol. 35(C), pages 247-256.
    3. Saidi, Hichem & El Montasser, Ghassen & Ajmi, Noomen, 2018. "Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach," MPRA Paper 84055, University Library of Munich, Germany.

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