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| | ARTICLES | Am. J. innov. res. appl. sci. Volume 9, Issue 1, Pages 92-103 (July 2019) |
| Research Article |
ABSTRACT
Background: This study empirically investigated the nexus between foreign direct investment, corruption and economic growth in developing economies: a case study of Nigeria under the period of 19 years from (1996-2014). Objective: The objective of this study was to investigate if corruption prevalent countries derive less benefit from the inflow of foreign direct investment, whether corruption reduced productivity and also to assess the influence of corruption on the growth of real gross domestic product. Methods: The study specifically examined the effect of corruption and foreign direct investment on economic growth of Nigeria. The real gross domestic product (RGDP), FDI, domestic investment (DINV), secondary school enrolment as a proxy for human capital (HC), labour force (LF) and a corruption index (CR) were used as dependent and independent variables respectively. The study employed Auto regressive distributed lag model (ARDL) analytical technique. The study found that there is a long run relationship among foreign direct investment, corruption and economic growth in Nigeria. The study further revealed that foreign direct investment, human capital, Labour force and domestic investment affect economic growth in Nigeria by 0.036%, 1.90% and 0.039% respectively and corruption has about 2% decreases in economic growth of Nigeria. This implies that increase in corruption contributes to the decrease in the pace of economic growth and development in Nigeria. Conclusion: The study concluded that the benefits derive from the inflow of FDI in corruption prevalent country reduces as a result of the presence of corruption in such country and as such, there is a positive relationship between foreign direct investment and economic growth, and a negative relationship exist between corruption and economic growth. Hence, the study recommended that government and policy makers should as a matter of urgency give high priority to the level of corruption in the economy. The study further suggested that concerted and sincere efforts should be made towards human capital development through adequate educational funding across all levels since this remains the major way of attaining sustainable economic growth and development in Nigeria.
Keywords: Human capital development, Education, Domestic investment, Foreign direct investment, Economic growth, Corruption.
Background: This study empirically investigated the nexus between foreign direct investment, corruption and economic growth in developing economies: a case study of Nigeria under the period of 19 years from (1996-2014). Objective: The objective of this study was to investigate if corruption prevalent countries derive less benefit from the inflow of foreign direct investment, whether corruption reduced productivity and also to assess the influence of corruption on the growth of real gross domestic product. Methods: The study specifically examined the effect of corruption and foreign direct investment on economic growth of Nigeria. The real gross domestic product (RGDP), FDI, domestic investment (DINV), secondary school enrolment as a proxy for human capital (HC), labour force (LF) and a corruption index (CR) were used as dependent and independent variables respectively. The study employed Auto regressive distributed lag model (ARDL) analytical technique. The study found that there is a long run relationship among foreign direct investment, corruption and economic growth in Nigeria. The study further revealed that foreign direct investment, human capital, Labour force and domestic investment affect economic growth in Nigeria by 0.036%, 1.90% and 0.039% respectively and corruption has about 2% decreases in economic growth of Nigeria. This implies that increase in corruption contributes to the decrease in the pace of economic growth and development in Nigeria. Conclusion: The study concluded that the benefits derive from the inflow of FDI in corruption prevalent country reduces as a result of the presence of corruption in such country and as such, there is a positive relationship between foreign direct investment and economic growth, and a negative relationship exist between corruption and economic growth. Hence, the study recommended that government and policy makers should as a matter of urgency give high priority to the level of corruption in the economy. The study further suggested that concerted and sincere efforts should be made towards human capital development through adequate educational funding across all levels since this remains the major way of attaining sustainable economic growth and development in Nigeria.
Keywords: Human capital development, Education, Domestic investment, Foreign direct investment, Economic growth, Corruption.
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American Journal of innovative
Research & Applied Sciences
Research & Applied Sciences
ISSN 2429-5396 (Online)
OCLC Number: 920041286
OCLC Number: 920041286
| HOME || ABOUT US || ARCHIVES || AIMS AND SCOP || AUTHORS || REVIEW|| SUBMIT MANUSCRIPT || EDITORIAL BOARD || CONTACT US |
| JULY | VOLUME 9 | N° 1 | 2019 |
Authors Contact
*Correspondant author and authors Copyright © 2019:
| Lawrence, Boboye Ajayi * | and | Mary, Oluwayemisi Akosile |
Affiliation.
1. Ekiti State University | Department of Finance | Ado Ekiti | Nigeria |
This article is made freely available as part of this journal's Open Access: ID | Lawrence-Ref.1-ajira250619 |
*Correspondant author and authors Copyright © 2019:
| Lawrence, Boboye Ajayi * | and | Mary, Oluwayemisi Akosile |
Affiliation.
1. Ekiti State University | Department of Finance | Ado Ekiti | Nigeria |
This article is made freely available as part of this journal's Open Access: ID | Lawrence-Ref.1-ajira250619 |
| Info-AJIRAS-® Journal ISSN 2429-5396 (Online) / Reference CIF/15/0289M |
American Journal of Innovative Research & Applied Sciences
FOREIGN DIRECT INVESTMENT, CORRUPTION AND ECONOMIC GROWTH IN DEVELOPING ECONOMIES: EMPIRICAL STUDY OF NIGERIA
| Lawrence, Boboye Ajayi * | and | Mary, Oluwayemisi Akosile | . Am. J. innov. res. appl. sci. 2019; 9(1):92-103.
| PDF FULL TEXT | | XML FILE | | Received | 29 June 2019 | | Accepted | 09 July 2019 | | Published | 23 July 2019 |
| Lawrence, Boboye Ajayi * | and | Mary, Oluwayemisi Akosile | . Am. J. innov. res. appl. sci. 2019; 9(1):92-103.
| PDF FULL TEXT | | XML FILE | | Received | 29 June 2019 | | Accepted | 09 July 2019 | | Published | 23 July 2019 |