ScholarLens Back to search
2007•SSRN Electronic JournalOpen access

DOES CORRUPTION MATTER FOR NIGERIA LONG RUN GROWTH: EVIDENCE FROM COINTEGRATION ANALYSES AND CAUSALITY TESTS?

Ajilore Olubanjo Taiwo, D.O. Elumilade

Open full text 2 citations

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.

About this research paper

What this paper is about

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.

Why it matters

OpenAlex reports 2 citations for this work. Citation counts describe recorded attention and do not establish research quality.

Key contribution

A contribution statement is not available in the OpenAlex record.

Method / approach

Method details are not available in the OpenAlex metadata.

Main findings

Findings are not separately available in the OpenAlex metadata.

Limitations

Limitations are not available in the OpenAlex metadata.

Applications

Application details are not available in the OpenAlex metadata.

Available 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.

Key concepts: Cointegration, Language change, Causality (physics), Economics, Granger causality, Sample (material), Macroeconomics, Development economics

Related papers

Related paper 1Related paper 2Related paper 3
Back to paper searchBrowse research topicsOriginal source
DOES CORRUPTION MATTER FOR NIGERIA LONG RUN GROWTH: EVIDENCE FROM COINTEGRATION ANALYSES AND CAUSALITY TESTS? — Research Paper | ScholarLens