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The Effect of Corruption on Economic Growth in Nigeria

Author

Listed:
  • Yusuf Oke Lawal

    (Department of Economics, Olabisi Onabanjo University Ago Iwoye, Ogun State, Nigeria)

  • Emmanuel Oladapo George

    (Department of Economics, Olabisi Onabanjo University Ago Iwoye, Ogun State, Nigeria)

  • Isiaq Olasunkanmi Oseni

    (Department of Economics, Olabisi Onabanjo University Ago Iwoye, Ogun State, Nigeria)

  • Babatunde Okuneye

    (Department of Economics, Olabisi Onabanjo University Ago Iwoye, Ogun State, Nigeria)

Abstract

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 corrup-tion on economic growth in Nigeria between 1987 and 2017 using secondary time series data sourced from the Transparency Interna-tional, Central Bank of Nigeria (CBN) Statistical Bulletin and World Development Indicators (WDI). Data were analysed using Ordinary Least Squares (OLS) techniques and Barro model. The result shows a negative significant relationship between corruption and economic growth and recommends that the government should strengthen the anti-corruption agencies in order to comprehensively fight corruption in Nigeria.

Suggested Citation

  • Yusuf Oke Lawal & Emmanuel Oladapo George & Isiaq Olasunkanmi Oseni & Babatunde Okuneye, 2020. "The Effect of Corruption on Economic Growth in Nigeria," Business & Management Compass, University of Economics Varna, issue 1, pages 65-78.
    • Handle: RePEc:vrn:journl:y:2020:i:1:p:65-78
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    References listed on IDEAS

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    2. Mo, Pak Hung, 2001. "Corruption and Economic Growth," Journal of Comparative Economics, Elsevier, vol. 29(1), pages 66-79, March.
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    4. World Bank, 2017. "World Development Indicators 2017," World Bank Publications - Books, The World Bank Group, number 26447.
    5. Okonjo-Iweala, Ngozi, 2018. "Fighting Corruption Is Dangerous: The Story Behind the Headlines," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262038013, April.
    6. Thierry Verdier & Daron Acemoglu, 2000. "The Choice between Market Failures and Corruption," American Economic Review, American Economic Association, vol. 90(1), pages 194-211, March.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Corruption; economic growth; corruption pyra-mid; transparency inter-national and ordinary least square;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General

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