ABSTRACT

This study investigates the effect of corruption on economic growth in Nigeria from 1996 to 2015. Johansen co integration test, ADF unit root test, and Ordinary Least Square methods were employed on time series (secondary) data, covering the period of study. Gross Domestic Product, Corruption Index, gross fixed capital formation and openness of the economy were the variables employed. One econometric model was specified to examine the effect of the explanatory variables on the explained variable. The result revealed that that there was significant effect of corruption on the Economic Growth (GDP). Openness of the economy (EOP) was equally statistically significant. This confirms the existing arguments that the level of corruption in a country is a relevant determinant of the level of economic growth. The study therefore recommends among others that the activities of the anticorruption agencies in Nigeria such as the Economic and Financial Crimes Commission (EFCC) and the Independent Corrupt Practices and Related Offences Commission (ICPC) should be strengthened and that there is the need to re-orientate the youths on moral values.