The Impact of Corruption on Economic Growth in Nigeria: Greases or Sand the Wheel Hypothesis

Abstract

Current study investigates that how economic growth of Nigeria is influenced by corruption. On data of time series from 1995 to 2020, the study applied Ordinary Least Square (OLS) method to estimate the effect of corruption on economic growth. The study also utilized Augmented Dickey Fuller test for stationary purpose. The results of OLS show negative but significant impact of corruption on economic growth. While other variables government expenditure and labor force participation rate has positive and significant but inflation put positive and insignificant impact on economic growth. The results also confirm the Sand the Wheel Hypothesis (SWH) in Nigeria. The results recommend that economic growth is improved by with the zero acceptances with corruption. The study also suggests that anti corruption agencies should be stronger in eliminating corruption.