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Corruption, poverty, and economic growth relationship in the Nigerian economy

Author

Listed:
  • Muhammad Yusuf

    (Multimedia University, Malaysia)

  • C.A. Malarvizhi

    (Multimedia University, Malaysia)

  • Mohammad Nurul Huda Mazumder

    (Multimedia University, Malaysia)

  • Zhan Su

    (Multimedia University, Malaysia)

Abstract

This study examined the causality relationship between corruption and poverty by adding economic growth in Nigeria using data from 1970 to 2011. VECM with co-integration test was employed to test the causality. The results indicate a long run relationship between corruption, economic growth and poverty in Nigeria. Evidence from the dynamic economic growth model has established the linkage of growth influence on corruption. Therefore, our findings strongly supported a significant reduction in corruption through the institutional good governance approach. Also, there was significant improvement in GDP growth within the study period. Therefore, findings of the study recommend government to give emphasis on the development of critical sectors that are growth enhancing in the short and medium term.

Suggested Citation

  • Muhammad Yusuf & C.A. Malarvizhi & Mohammad Nurul Huda Mazumder & Zhan Su, 2014. "Corruption, poverty, and economic growth relationship in the Nigerian economy," Journal of Developing Areas, Tennessee State University, College of Business, vol. 48(3), pages 95-107, July-Sept.
    • Handle: RePEc:jda:journl:vol.48:year:2014:issue3:pp:95-107
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    Citations

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    Cited by:

    1. Rana Ejaz Ali Khan & Hafiza Maria Naeem, 2020. "Corruption, Income Inequality and Human Resource Development in Developing Economies," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(4), pages 248-259, December.
    2. Moses Umkanagwa Paul & Prof Ibrahim Baba Iya, PhD & Miftahu Idris, PhD, 2023. "Impact of Financial Development and Economic Growth on Poverty in Middle Income African Countries," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(9), pages 142-155, September.
    3. sanders, zagabe & Mazibuko, Molebogeng, 2023. "Corruption and economic growth: the case of the Democratic Republic of the Congo," MPRA Paper 121518, University Library of Munich, Germany, revised 14 Jun 2024.
    4. Ambar, Rabnawaz, 2015. "Corruption, Inequality and Economic Growth," MPRA Paper 70375, University Library of Munich, Germany, revised 2015.
    5. Nageri Kamaldeen Ibraheem & Gunu Umar, 2020. "Corruption and Ease of Doing Business: Evidence from ECOWAS," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 8(1), pages 19-37, October.

    More about this item

    Keywords

    corruption; poverty; economic growth; co-integration;
    All these keywords.

    JEL classification:

    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I30 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes

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