CORRUPTION AND ECONOMIC PERFORMANCE IN NIGERIA

Iferi E. Willie; Leyira C. Micah

doi:10.5281/zenodo.18595674

Iferi E. Willie Department of Accounting, Faculty of Management Sciences, University of Portharcourt, Choba, Rivers State, Nigeria.
Leyira C. Micah Department of Accounting, Faculty of Management Sciences, University of Portharcourt, Choba, Rivers State, Nigeria.

DOI: https://doi.org/10.5281/zenodo.18595674

Keywords: Corruption, Economic, Performance

Abstract

This study aimed to examine the impact of corruption on economic performance in Nigeria. It sought to determine whether corruption acts as factor that disrupts economic growth rate and per capita income income. To achieve these objectives, the study employed panel data for the year 1996-2024 with respect to corruption perception index (CPI). Additionally, the study employed causal analysis techniques to establish a deeper understanding of the causal relationships between corruption, and economic performance. This was followed by estimating a co-integration regression using the multiple regression method. The empirical results show that corruption did not significantly influence economic growth rate and per capita income in Nigeria. The study recommends that the National Bureau of Statistics (NBS) should develop and publish disaggregated corruption indices and tax effort scores by geopolitical zone, to guide targeted anti-corruption and tax reform interventions. The findings clearly state that the unfavourable of economic growth is not due to corruption. But, if the government successfully controls corruption, tax collection will be increased which ensures self-sustaining economic growth.

Downloads

Download data is not yet available.

References

Agosin, M. R. (2008). Export diversification and growth in emerging economies. Cepal Review, 97, 115-131.

Ahmed, H., Hamid, N., & Mahmud, M. (2015). Exports: Lessons From the Past and The Way Forward. Cambridge University Press.

Akbar, M., Naqvi, Z. F., & Din, M. U. (2000). Export diversification and the structural dynamics in the growth process: The case of Pakistan. The Pakistan Development Review, 39(4), 4573-589.

Aldan, A., & Çulha, O. Y. (2016). The role of the extensive margin in the export of Turkey: A comparative analysis. Central Bank Review, 16(2), 59-64.

Al-Marhubi, F. (2000). Export diversification and growth: An empirical investigation. Applied Economics Letters, 7(9), 559-562.

Amiti, M., & Freund, C. (2008). The anatomy of China's export growth. The World Bank Policy Research Working Paper, 4628,1-29.

Amurgo-Pacheco, A., & Pierola, M. D. (2008). Patterns of export diversification in developing countries: Intensive and extensive margins. World Bank Policy Research Working Paper, 4473, 1-58.

Armeane, M. C., Michael, M., & Demetris, P. (1991). Liberalizing Foreign Trade: The Experience of Indonesia, Pakistan, and Sri Lanka. Cambridge: Basel Blackwell.

Armington, P.S. (1969). A theory of demand for products distinguished by place of production. IMF Staff Papers,16,159-76

Bernard, A. B., Jensen, J. B., Redding, S. J., & Schott, P. K. (2009). The margins of US trade. American Economic Review, 99(2), 487-93.

Bingzhan, S. (2011). Extensive margin, quantity, and price in China's export growth. China Economic Review, 22(2), 233-243.

Cadot, O., Carrère, C., & Strauss-Kahn, V. (2011). Export diversification: What's behind the hump? Review of Economics and Statistics, 93(2), 590-605.

Devkota, S. C. (2004). Causes of export instability in Nepal. Economics University Library of Munich Working Paper, 0410002, 1-13.

Hussain, Abbas and Munir

Ekmen, S., & Erlat, G. (2013). Export diversification and competitiveness: Intensive and extensive margins of Turkey. Ekonomik Yaklasim, 24(88), 35-64.

Gilaninia, S., Taleghani, M., & Koohestani, M. R. (2013). Export incentives and its importance in the export performance. Nigerian Chapter of Arabian Journal of Business and Management Review, 62(1098), 1-6

Government of Pakistan. (1971). Economic Survey (1971-1972). Ministry of Finance: Islamabad.

Government of Pakistan. (2019). Economic Survey 2019-2020. Ministry of Finance: Islamabad.

Gozgor.G, G., & Can, M. (2016). Effects of the product diversification of exports on income at different stages of economic development. Eurasian Business Review, 6(2), 215-235.

Hamrick, D., & Bamber, P. (2019). Pakistan in the Medical Device Global Value Chain. Duke University Global Value Chains Center.

Helpman, E., Melitz, M., & Rubinstein, Y. (2008). Estimating trade flows: Trading partners and trading volumes. The Quarterly Journal of Economics, 123(2), 441-487.

Hesse, H. (2009). Export diversification and economic growth, Breaking into new markets: emerging lessons for export diversification. World Bank Working Paper, 21, 55-80.

Hummels, D., & Klenow, P. J. (2005). The variety and quality of a nation's exports. American Economic Review, 95(3), 704-723.

Hussain, A. H., Farid, A. F., Hussain, S. H., & Iqbal, S. I. (2011). The future of budgetary allocation to sports sector in Pakistan: Evidence from autoregressive integrated moving average model. Journal of Managerial Sciences, 5(2), 111-124.

Imbs, J., & Wacziarg, R. (2003). Stages of diversification. American Economic Review, 93(1), 63-86.

Jongwanich, J. (2020). Export diversification, margins, and economic growth at industrial level: Evidence from Thailand. The World Economy, 43(10), 2674-2722.

Taxation, Corruption and Economic Growth: A Causality Analysis of Developed and Developing Country

Khan, A. H., & Ali, S. (1998). The experience of trade liberalization in Pakistan. The Pakistan Development Review, 37(4), 661-685.

Khan, M., & Afzal, U. (2016). The diversification and sophistication of Pakistan's exports: The need for structural transformation. The Lahore Journal of Economics, 21, 99-127.

Krugman, P. (1979). A model of balance of payments crises. Journal of Money, Credit And Banking, 11(3), 311-325.

Lyoboyi, M. (2019). Macroeconomic analysis of export diversification in Nigeria. Empirical Economic Review, 2(1), 83-116.

Mahmood, A., & Ahmad, W. (2017). Export performance of Pakistan: Role of structural factors. SBP Staff Notes, 02/17, 1-10.

Mahmud, M., Ahmed, H., Hamid, N., & Rahim, T. U. (2010). A strategy for reversing Pakistan's dismal export performance. CREB Policy Paper, 01-10.

Malik, A., & Majeed, M. T. (2018). Export performance of Pakistan: Co-Integration analysis with world commodity prices. Pakistan Economic Review, 1(2), 21-43.

Melitz, M. J. (2003). The impact of trade on intra‐industry reallocations and aggregate industry productivity. Econometrica, 71(6),1 695-1725.

Mubeen, N., & Ahmad, N. (2016). Towards measurement and determinants of export diversification: An empirical analysis of Pakistan. Pakistan Journal of Commerce and Social Sciences (PJCSS), 10(3), 588-605.

Naoman, A. (1992). Liberalisation of foreign trade and international competitiveness. Financing Pakistan Development in the 1990s, Oxford University Press, Karachi, Pakistan.

Noureen, S., Mahmood, Z., & Sector, H. (2014). Explaining trends and factors affecting export diversification in ASEAN and SAARC regions: An empirical analysis. NUST Journal Of Social Sciences And Humanities, 2(1),1-28.

Otamurodov, S., Shujin, Z. H. U., & Zhong, T. (2016). The role of extensive margin and intensive margin in Kazakhstan’s export growth. Ecoforum Journal, 5(2), 1-20.

Hussain, Abbas and Munir

Shabbir, T. (2011). Economic impact of the global financial crisis of 2007–2009 on South Asia. Journal of South Asian and Middle Eastern Studies, 34(2), 32-67.

Siddiqui, A. H. (2018). Export diversification and growth in Pakistan: An empirical investigation from 1972 to 2015. Business and Economic Review, 10(1), 107-131.

Turkan, K. (2014). Investigating the role of extensive margin, intensive margin, price and quantity components on Turkey’s export growth during 1998-2011. MPRA Working Paper, 53292, 1-72.

Wadho, W., & Chaudhry, A. (2019). Identifying and understanding high growth firms in the Pakistani textile and apparel sectors. The Lahore Journal of Economics, 24(2), 73-92.

Wahab, Y. A., & Jalil, A. (2017). Post-ATC impacts on product-intensive and extensive trade margins. Pakistan Economic and Social Review, 55(2), 315-336.