The Effects of Corruption on Economic Development: A Case Study of Nigeria

This Thesis investigates the link between Corruption, Military Spending, Public Spending and Economic Growth for the Nigerian economy. ARDL Bounds test and Granger Causality approaches are conducted over the period 1980- 2010.The empirical results suggest that the public investment is an important driver for real income growth in both the long and short- terms of the Nigerian economy. The findings also show that Corruption and Military Spending cause output growth in both the long and short- term periods. The negative impact of Corruption and Military Spending exist for real income whereas Public Spending has positive influence on economic growth in the case of the Nigerian economy. Keywords: Economic Growth, a Growth Model, ARDL, Granger Causality, Corruption, Nigerian economy.