The study period covers from 1996 20 which is a period of seventeen years. For africa to break the impasse of underdevelopment, the paper calls for good governance and the establishment of special agencies to monitor all development projects undertaking by african countries. Corruption has been identified as one major obstacle militating against rapid growth and development of the nigerian economy. Introduction corruption in kogi state is a social problem which attracts the interest of many scholars and academia. This thesis is about the complex relationship between governance, corruption and economic development. Therefore, corruption, which has come to survive despite all efforts at curbing it, this is at the center of our discourse. In fact, the quest for development has been and still is one of the most critical issues in the nigerian state. This study was set out to investigate the impact of corruption on economic growth in nigeria from 1986 to 2007. Most of the criticism of donorfunded initiatives to support african civil society and local ngos has come from within the paradigm that presumes processes of neoliberal economic development and liberal. This is with a view to find out the nature and character of corruption, its impact on economic development in nigeria and thus, offer suggestion and a way forward. It is an incontrovertible fact that corruption has been the bane of nigeria s development. Corruption and sustainable economic development in nigeria. Economic development of nigeria pdf project topics.
Multinational corporations and economic development in. Corruption, political instability and economic development. Corruption creates negative national image and loss of. Thus, without mincing words the phenomenon has ravaged the country and destroyed most of. Corruption and socioeconomic development in nigeria.
May 15, 2018 pervasive corruption has remained a strong limitation to economic development in nigeria. While economic growth and the other variables such as government expenditure gov, foreign direct investment fdi, gross capital formation gcf has. Attempt at achieving this objective has led to the segmentation of the paper into three main sections. Public institutions are only public in name, because they operate for the purpose of private accumulation of wealth. Methodology the paper adopts qualitative research design to gain an insight into corruption in nigeria public sector. The impact of corruption on sustainable economic growth and. Owners of capital and investors consider the nigerian economy as unsafe for investment due to the prevalence of corrupt political leaderships. As part of effort at fighting corruption and strengthening the economy, nigeria embarked.
The national planning commission has identified systemic corruption, which engenders low levels of transparency and accountability, as the major source of development failure national planning commission, 2005. Corruption and the challenges of good governance in kogi. A close relationship exists between the economic development, and a stable democratic rule. Corruption creates uncertainty and risk in the growth and development potential of any country. Pdf corruption, governance and political instability in. Department of economics, faculty of social sciences university of port harcourt, rivers state, nigeria. Major data for this study was collected from secondary sources and analysis. Very recently, the international community has recognized its harmful impact by including a specific target to fight corruption in the 2030 agenda for sustainable development. Jun 20, 2015 odunlami samuel abimbola, awolusi olawumi dele. Corruption, ngos, and development in nigeria these aid institutions, significant critiques of the dominant donor perspective have emerged. Economic diversification for sustainable development in. It shall also serve a veritable source of information on issues of corruption.
It seeks to extend the literature via exploring the complex web of connections between corruption, development and the quality of political institutions in the specific case of nigeria. Solid evidence for example, mauro 1995, and world bank, 1997 demonstrates the pernicious effects of corruption upon, among other things, investment, economic growth, environmental quality and therefore social welfare. Multinational corporations and economic development in nigeria. Corruption denies the ordinary citizen the basic means of livelihood, it worsen unemployment and erodes our image as a nation and as individual danjuma goje 2010. Secondary data were sourced from world bank reports on nigeria and corruption reports from transparency international on nigeria. Corruption, misappropration, embezzlement, private gain introduction corruption has been given various definitions by various scholars. Thus, without mincing words the phenomenon has ravaged the country and destroyed most of what is held as cherished national values. The fourth step in the report created 3 scenarios that show the lower levels of corruption that nigeria could have achieved in the past and can achieve in the future while the fifth step calculated the impact of corruption on economic growth and output for each scenario. Due to the nature of corruption, it has to be typified into various levels. In so doing the thesis explores some of the limitations of mainstream approaches to corruption and.
In spite of its prevalence in the nigerian society and its harmful effect to the economic and social. Corruption reduces effectiveness of investment due to theft of public funds initially budgeted for achieving realistic economic growth. It examines the concept of leadership and corruption in the context of nigeria. Aliyu, shehu usman rano and elijah, akanni oludele 2008. Corruption as one of major factors which have slow down economic growth and development in nigeria has also deterred political and economic. This paper examines the relationship between corruption and economic development using secondary sources. Expectedly, this has had a debilitating impact on the nations socio economic and political development. Abstract the objective of the study is to determine the extent to which multinational firms have spurred up economic development in nigeria. Political leadership and corruption in nigeria since 1960.
Against this backdrop, this article examines the effects of corruption on the economic development of nigeria. The impact of corruption on sustainable economic growth. The issue of corruption has raised a lot of concern as it continues to plague the nation. In doing this, the study looked at historical overview of corruption in nigeria and conceptual issues were also discussed. An econometric analysis of the impact of corruption on economic.
American journal of environmental policy and management. Economic diversification for sustainable development in nigeria. Aliyu and elijah 2008 asserted that corruption and economic growth are integrated in. Afterwords, the study found out that corruption has contributed to lack of sustainable economic development in nigeria and the study recommends that efcc and other security apparatus should strategies ways to reduce corruption in nigeria in order to bring about sustainable economic development in nigeria. Corruption and the investment climate in nigeria semantic. The study examines the apparent machinery through which corruption impairs economic development in nigeria.
We examined over 30 studies to understand the way that corruption affects gdp in nigeria. The economic situation of nigeria nigeria is a mono economic nation with its economy heavily dependent on petroleum revenue which accounts for about 80% of government revenue and 90% of foreign exchange earnings. The paper concludes that corruption and inept leadership are responsible for democratic instability in nigeria. Methodology the study adopts an ordinary least square ols of simple regression model in order to test the corruption on the economic development in nigeria. Data on the study were analysed using the ordinary least square technique. Corruption also has an indirect effect on a countrys economic performance by affecting many factors fuelling. Before the prominence of petroleum industry, nigerian economy was dependent on agriculture. The paper seeks to examine the effects of corruption on economic development in nigeria. Hence, it is now commonly regarded as an economic crime because it impacts negatively on all facets of a country. The consequences of corruption are unfavorable for the progress of any society. In developing countries, according to the united nations development. Corruption simply refers to as dishonest and illegal activity by those in authority or. Ogun state, nigeria 1 corruption and development in africa.
Economic development and democratic stability mutually support each other. A corruption in nigeria united nations office on drugs. The paper examines the apparent machinery through which corruption impairs economic development in nigeria. It increases the degree of uncertainty and risk associated with investment and. Corruption hampers development and thus raises the level of poverty in any economy that finds itself entrenched in corrupt practices. The main aim of this study is to analyze how corruption impedes the development of most african countries with nigeria as a case study. A barrotype endogenous growth model was adopted and reconditioned to suit the purpose of the paper.
When nigerians keep on shifting the countrys currency to foreign countries, there will be less economic development in nigeria. Impact of corruption on democratic stability in nigeria. The main objective of this paper is to analyse the effects of corruption on economic growth and development of nigeria in the context of its economic reform programme since 1999 to date. It highlights the probable root causes of corruption, and the likely factors that give vent to its exacerbation in the nigerian economy. Corruption in the public sector is viewed as the major obstacle to economic development kaufmann, 1997. Effects of corruption and economic reforms on economic growth. International journal of economic development research and investment vol. Oct 11, 2011 findings the evidence shows that socio. Impact of corruption on nigerias economic development by.
Dec 16, 2019 it has been observed by scholars and commentators that corruption is a major challenge to social, political, and economic development in any country. Calculatedthe impact of corruption on economic growth and output for each scenario, using the coefficient identified in step 2. Effects of corruption on nigeria economy and the way forward. Corruption is the single greatest obstacle to economic and social development around the world1. Africa, corruption, socio economic development, underdevelopment introduction. Identifying impact of corruption on economic growth. A corruption in nigeria united nations office on drugs and. H1 sustainable economic development in nigeria is low. Another major reason for corruption in nigeria is the high level of poverty. He concludes that, corruption in whatever form is inimical to the development of any society.
Nov 16, 2018 nigeria s corruption epidemic has continued since then. In the work of odekunle 1991, he put forward that corruption could take any of the following typology. Corruption is a world wide phenomenon which has been with societies throughout history, it has caused political and economic. Corruption in economic development world bank documents. Challenges for political and economic change gbenga lawal department of political science, olabisi onabanjo university, agoiwoye, nigeria abstract. Corruption and economic development in nigeria research.
The poor and the rich engage in corruption for different reasons. However, the study introduces a new perspective on the role of corruption in economic growth and provides quantitative estimates of the impact of corruption on the economic growth in nigeria as well as their causal relationship. Pdf political corruption and economic growth in nigeria. The study reveals that low corruption perception index ranking on nigeria, which implies high level of corruption, leads to low investment and thus low economic growth in nigeria. Pdf corruption an enemy to economic development in nigeria. The study investigated the impact of corruption on economic development in nigeria. Pdf impact of corruption on economic growth in nigeria. The first section talks about the introduction and. By this it is meant an act largely perpetuated by businessman and contractors directly motivated by the financial gains. Identified the transmission channels of corruption on economic outcomes. Evidence from nigeria, authornageri kamaldeen ibraheem and g. Beneficial grease, minor annoyance, or major obstacle. Corruption in nigeria, a threat to sustainable economic development with abstract, chapter 15, references and questionnaire. Such authors include abiodum, elijah and obayelu 2007 that use descriptive survey and content analysis to investigate the effect of corruption and economic reforms on economic growth and development in nigeria.
Development is seen as the process by which a type of social change is introduced into. The aim of the study was to analyze the major determinants of foreign direct investment inflows in nigeria taking governance corruption, internal conflict, law and order and socio economic condition into consideration, using data sourced from cbn statistical bulletin and the world bank development index 2008 from 1970 2010. Corruption and the abuse of power have long been features of nigeria s economic and political landscape. Corruption as an obstacle to development in developing. Corruption in nigeria, a threat to sustainable economic. Corruption as an obstacle to economic growth at the macro level, the literature generally shows that corruption has a negative, direct impact on economic growth and development. Corruption, political instability, economic development, ecowas. The study seeks to examine the effects of corruption on economic development in nigeria. Any country with high corruption levels is likely to experience developmental bankruptcy. Corruption and economic development in nigeria research cyber. A few of researchers has discussed the level of corruption on economic growth in both developed and developing countries.
When the country gained independence amidst fanfare and jubilation on october 1, 1960, the belief was that independence would bring along with it. When some ceos indulge in corrupt practices to make their money, economic development will suffer. Corruption imposes additional costs on growth process as it diverts scarce resources away from viable investment. This study analysed the consequences of corruption on investment in nigeria. The study shall project the ill effect of corruption on the economic development of nigeria. Abstract the world bank 2000 asserts that corruption is the single greatest impediment to economic growth in third world countries.
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