IMPACT OF CORRUPTION ON ECONOMIC GROWTH IN NIGERIA (1970-2019)

Abstract

Corruption is an ancient practice that has been traced back to pre-biblical time and made it known in the ancient civilizations of developed and developing countries. Previous empirical studies have appraised efforts of the government in fighting corruption in Nigeria. In spite of this, corruption has been identified as one of the hindering factors for attaining the desirable economic growth. This study therefore examines the effect of corruption on economic growth in Nigeria between 1970 and 2019 using secondary time series data sourced from the Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators (WDI). Data were analysed using Ordinary Least Squares (OLS) techniques, ARDL Long run and short run estimates, ARDL Bound Test, as well as the granger causality. The result shows a positive significant relationship between economic corruption and economic growth and negative relationship between institutional corruption and economic growth. The study recommends that the government should strengthen the anti-corruption agencies in order to comprehensively fight corruption in Nigeria.