IDEAS home Printed from https://ideas.repec.org/a/sae/jinter/v31y2019i2p183-216.html
   My bibliography  Save this article

Political Regime Types and Economic Development in Nigeria: Significance of Conflict and Corruption

Author

Listed:
  • Olalekan Charles Okunlola

Abstract

This article investigates the short- and long-run effects of political regimes (POLREGs) on economic development in Nigeria between 1984 and 2015. It looks at the effects of the conflict (CONFL) and corruption (COR) on economic development indicators and examines the interactive effect of POLREGs and COR as well as CONFL on economic development. COR and CONFL seem to be more prevalent in Nigeria during democracy relative to the periods under dictatorship. Using the Autoregressive Distributed Lag (ARDL) approach to cointegration, it derived a number of robust conclusions. Democracy in the long run yields higher economic development when it is devoid of CONFL and COR, while autocracy hinders economic development. In the short run however, more autocracy fosters economic development in Nigeria while democracy hinders it. COR portends grave threat to the development of Nigeria’s economy as it reduces development in the long run. Effect of CONFL on economic development in Nigeria is unclear. These findings highlight the need to establish effective anti-graft agencies to fight COR to the barest minimum in Nigeria. They also highlight the need to employ CONFL resolution mechanisms in resolving CONFL issues in the democratization process of the country. JEL: D74, K420, P160, O1, Q550

Suggested Citation

  • Olalekan Charles Okunlola, 2019. "Political Regime Types and Economic Development in Nigeria: Significance of Conflict and Corruption," Journal of Interdisciplinary Economics, , vol. 31(2), pages 183-216, July.
    • Handle: RePEc:sae:jinter:v:31:y:2019:i:2:p:183-216
    DOI: 10.1177/0260107918769539
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/0260107918769539
    Download Restriction: no
    File URL: https://libkey.io/10.1177/0260107918769539?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. repec:dau:papers:123456789/5404 is not listed on IDEAS
    2. Ahlborg, Helene & Boräng, Frida & Jagers, Sverker C. & Söderholm, Patrik, 2015. "Provision of electricity to African households: The importance of democracy and institutional quality," Energy Policy, Elsevier, vol. 87(C), pages 125-135.
    3. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    4. Helliwell, John F., 1994. "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science, Cambridge University Press, vol. 24(2), pages 225-248, April.
    5. Acemoglu,Daron & Robinson,James A., 2009. "Economic Origins of Dictatorship and Democracy," Cambridge Books, Cambridge University Press, number 9780521671422, January.
    6. Arthur Goldsmith, 1995. "Democracy, property rights and economic growth," Journal of Development Studies, Taylor & Francis Journals, vol. 32(2), pages 157-174.
    7. Acemoglu, Daron & Robinson, James A., 2006. "Economic Backwardness in Political Perspective," American Political Science Review, Cambridge University Press, vol. 100(1), pages 115-131, February.
    8. José Boza Chirino & Marta Wood Valdivielso & Juan Miguel Báez Melián, 2006. "Analysis of the effectiveness of official development assistance," Economic Analysis Working Papers (2002-2010). Atlantic Review of Economics (2011-2016), Colexio de Economistas de A Coruña, Spain and Fundación Una Galicia Moderna, vol. 5, pages 1-21, October.
    9. Mo, Pak Hung, 2001. "Corruption and Economic Growth," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 66-79, March.
    10. Paul Collier & Anke Hoeffler, 2004. "Greed and grievance in civil war," Oxford Economic Papers, Oxford University Press, vol. 56(4), pages 563-595, October.
    11. James Raymond Vreeland, 2008. "The Effect of Political Regime on Civil War," Journal of Conflict Resolution, Peace Science Society (International), vol. 52(3), pages 401-425, June.
    12. Hristos Doucouliagos & Mehmet Ali Ulubaşoğlu, 2008. "Democracy and Economic Growth: A Meta‐Analysis," American Journal of Political Science, John Wiley & Sons, vol. 52(1), pages 61-83, January.
    13. North,Douglass C. & Wallis,John Joseph & Weingast,Barry R., 2013. "Violence and Social Orders," Cambridge Books, Cambridge University Press, number 9781107646995, September.
    14. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521793797, January.
    15. Chauvet, Lisa, 2003. "Socio-political instability and the allocation of international aid by donors," European Journal of Political Economy, Elsevier, vol. 19(1), pages 33-59, March.
    16. Przeworski,Adam & Alvarez,Michael E. & Cheibub,Jose Antonio & Limongi,Fernando, 2000. "Democracy and Development," Cambridge Books, Cambridge University Press, number 9780521790321, January.
    17. Solomon W. Polachek & Daria Sevastianova, 2012. "Does conflict disrupt growth? Evidence of the relationship between political instability and national economic performance," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(3), pages 361-388, March.
    18. Carl Henrik Knutsen, 2011. "Democracy, Dictatorship and Protection of Property Rights," Journal of Development Studies, Taylor & Francis Journals, vol. 47(1), pages 164-182.
    19. Leblang, David A., 1997. "Political Democracy and Economic Growth: Pooled Cross-Sectional and Time-Series Evidence," British Journal of Political Science, Cambridge University Press, vol. 27(3), pages 453-472, July.
    20. Adam Przeworski & Fernando Limongi, 1993. "Political Regimes and Economic Growth," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 51-69, Summer.
    21. Matthew A. Baum & David A. Lake, 2003. "The Political Economy of Growth: Democracy and Human Capital," American Journal of Political Science, John Wiley & Sons, vol. 47(2), pages 333-347, April.
    22. Timmons, Jeffrey F., 2010. "Does Democracy Reduce Economic Inequality?," British Journal of Political Science, Cambridge University Press, vol. 40(4), pages 741-757, October.
    23. Michael T. Rock, 2003. "The Politics of Development Policy and Development Policy Reform in New Order Indonesia," William Davidson Institute Working Papers Series 2003-632, William Davidson Institute at the University of Michigan.
    24. Ivar Kolstad & Arne Wiig, 2011. "Does democracy reduce corruption?," CMI Working Papers 4, CMI (Chr. Michelsen Institute), Bergen, Norway.
    25. Plümper, Thomas & Neumayer, Eric, 2006. "The Unequal Burden of War: The Effect of Armed Conflict on the Gender Gap in Life Expectancy," International Organization, Cambridge University Press, vol. 60(3), pages 723-754, July.
    26. Fosu, A. K., 2001. "Political instability and economic growth in developing economies: some specification empirics," Economics Letters, Elsevier, vol. 70(2), pages 289-294, February.
    27. Francis T. Lui, 1996. "Three Aspects Of Corruption," Contemporary Economic Policy, Western Economic Association International, vol. 14(3), pages 26-29, July.
    28. Michael Rock, 2009. "Corruption and Democracy," Journal of Development Studies, Taylor & Francis Journals, vol. 45(1), pages 55-75.
    29. Ugur, Mehmet & Dasgupta, Nandini, 2011. "Corruption and economic growth: A meta-analysis of the evidence on low-income countries and beyond," MPRA Paper 31226, University Library of Munich, Germany, revised 31 May 2011.
    30. Olson, Mancur, 1993. "Dictatorship, Democracy, and Development," American Political Science Review, Cambridge University Press, vol. 87(3), pages 567-576, September.
    31. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    32. Bera, Anil K. & Jarque, Carlos M., 1981. "Efficient tests for normality, homoscedasticity and serial independence of regression residuals : Monte Carlo Evidence," Economics Letters, Elsevier, vol. 7(4), pages 313-318.
    33. Vladimir Kühl Teles, 2007. "Institutional quality and endogenous economic growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 34(1), pages 29-41, January.
    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. Carl Henrik Knutsen, 2012. "Democracy and economic growth: A survey of arguments and results," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 15(4), pages 393-415, December.
    2. Wafa Ghardallou & Dorsaf Sridi, 2020. "Democracy and Economic Growth: a Literature Review," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 982-1002, September.
    3. Kammas, Pantelis & Sarantides, Vassilis, 2019. "Do dictatorships redistribute more?," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 176-195.
    4. John A Doces, 2020. "Democracy, consumption, and growth in sub-Saharan Africa," International Area Studies Review, Center for International Area Studies, Hankuk University of Foreign Studies, vol. 23(1), pages 28-48, March.
    5. Knutsen, Carl Henrik, 2013. "Democracy, State Capacity, and Economic Growth," World Development, Elsevier, vol. 43(C), pages 1-18.
    6. Madeeha Gohar Qureshi & Eatzaz Ahmed, 2012. "The Inter-linkages between Democracy and Per Capita GDP Growth: A Cross Country Analysis," PIDE-Working Papers 2012:85, Pakistan Institute of Development Economics.
    7. Méon, Pierre-Guillaume & Sekkat, Khalid, 2022. "A time to throw stones, a time to reap: how long does it take for democratic transitions to improve institutional outcomes?," Journal of Institutional Economics, Cambridge University Press, vol. 18(3), pages 429-443, June.
    8. Daron Acemoglu & Suresh Naidu & Pascual Restrepo & James A. Robinson, 2019. "Democracy Does Cause Growth," Journal of Political Economy, University of Chicago Press, vol. 127(1), pages 47-100.
    9. Natkhov, T. & Polishchuk, L., 2017. "Political Economy of Institutions and Development: The Importance of Being Inclusive. Reflection on "Why Nations Fail" by D. Acemoglu and J. Robinson. Part I. Institutions and Economic Devel," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 12-38.
    10. Jeffrey Edwards & Frank Thames, 2010. "Growth volatility and the interaction between economic and political development," Empirical Economics, Springer, vol. 39(1), pages 183-201, August.
    11. Gerring, John & Gjerløw, Haakon & Knutsen, Carl Henrik, 2022. "Regimes and industrialization," World Development, Elsevier, vol. 152(C).
    12. Colagrossi, Marco & Rossignoli, Domenico & Maggioni, Mario A., 2020. "Does democracy cause growth? A meta-analysis (of 2000 regressions)," European Journal of Political Economy, Elsevier, vol. 61(C).
    13. Ahmet Faruk Aysan & …mer Faruk Baykal & Marie-Ange Véganzonès–Varoudakis, 2011. "The Effects of Convergence in Governance on Capital Accumulation in the Black Sea Economic Cooperation Countries," Chapters, in: Mehmet Ugur & David Sunderland (ed.), Does Economic Governance Matter?, chapter 6, Edward Elgar Publishing.
    14. Lourdes ROJAS RUBIO, 2022. "Inequality, Corruption and Support for Democracy," THEMA Working Papers 2022-20, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    15. Dahlum, Sirianne & Knutsen, Carl Henrik, 2017. "Do Democracies Provide Better Education? Revisiting the Democracy–Human Capital Link," World Development, Elsevier, vol. 94(C), pages 186-199.
    16. Besley, Timothy & Kudamatsu, Masayuki, 2007. "Making autocracy work," LSE Research Online Documents on Economics 3764, London School of Economics and Political Science, LSE Library.
    17. Sunde, Uwe & Fortunato, Piergiuseppe & Cervellati, Matteo, 2011. "Democratization and Civil Liberties: The Role of Violence During the Transition," CEPR Discussion Papers 8315, C.E.P.R. Discussion Papers.
    18. Mishra, Sudhanshu K, 2018. "A Simultaneous Equation Model of Globalization, Corruption, Democracy, Human Development and Social Progress," MPRA Paper 84213, University Library of Munich, Germany.
    19. Jong-A-Pin, Richard & Mierau, Jochen O., 2022. "No country for old men: Aging dictators and economic growth," Economic Modelling, Elsevier, vol. 107(C).
    20. Marta Guerriero, 2019. "Democracy and the Labor Share of Income: A Cross-Country Analysis," ADB Institute Series on Development Economics, in: Gary Fields & Saumik Paul (ed.), Labor Income Share in Asia, chapter 0, pages 151-176, Springer.

    More about this item

    Keywords

    Conflict; corruption; democracy; economic development; Nigeria;
    All these keywords.

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

    Statistics

    Access and download statistics

    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:sae:jinter:v:31:y:2019:i:2:p:183-216. 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: SAGE Publications (email available below). General contact details of provider: .

    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.