Autoregressive Distributed Lag Approach (ARDL) to Corruption and Economic Growth Nexus in Nigeria

Bassey Enya Ndem; Henry Tumba James; Friday Bassey Agala

doi:10.56556/jescae.v1i3.181

Authors

Bassey Enya Ndem Department of Economics, Faculty of Social Sciences, University of Calabar, Calabar, Nigeria
Henry Tumba James Adamawa State University, Mubi
Friday Bassey Agala Department of Economics, Faculty of Social Sciences, University of Calabar, Calabar, Nigeria

DOI:

https://doi.org/10.56556/jescae.v1i3.181

Keywords:

Corruption, Economic growth, Autoregressive distributed lag model, EFCC

Abstract

The corruption in Nigeria is generating concern around the globe and among its citizens. This concern is because corruption has continued undermining the country's socio-economic development. Thus, this study empirically investigates the impact of corruption on economic growth in the Nigerian economy using annual data from 1980 to 2018. The study employed the autoregressive distributed lag (ARDL) model as its estimation technique. In this study, economic growth was proxied by gross domestic product growth rate (GDPGR), while corruption was proxied by the corruption perception index. The result revealed that corruption has a negative and significant impact on economic growth in Nigeria in the long run. This finding implies that corruption has impeded the economic development process in Nigeria within the period of this study. Thus, it was recommended that anti-corruption agencies in Nigeria, such as the Economic and Financial Crime Commission (EFCC) should be strengthened by enacting laws that will empower them to investigate, arrest and prosecute offenders.