Impact Of Corruption On The Nigeria Economy(1981-2018):- Oluka Racheal O

ABSTRACT

This study examined the Effect ofCorruption on Nigeria’s Economyfrom 1981 to 2017. The study utilized Multiple Linear Regression analysis, Augmented Dickey Fuller (ADF) Testfor unit root, Johansen Cointegration Methods and other stability tests. The results of the Augmented Dickey Fuller test, showed that the dependent variables CPI and NCR became stationary at the first difference thus, while the independent variable RGDP growth rate was stationary at levelform. Johansen Cointegration method was used to testfor the existence of long run relationship among the variables and the results showed that there is no long run relationship between forex reserve and economic growth. The results ofthe Multiple Linear Regression analysisshowed that the estimatedcoefficient ofthe predictor variable, Real Gross Domestic Product growth rate was -0.051517. By implication, a unit increase in Nigeria’s corruption Perception Index (CPI) resulted to a decrease in economic growth by 0.05% in Nigeria. The policy implication of this is that Nigeria’s economic growth is hampered by corruption. Thus, to achieve more economic growth, corruption level has to be reduced.