Socioeconomic Determinants of Corruption in Nigeria: 1981 - 2016

Abstract

Most empirical studies on the determinants of corruption are cross country studies. Furthermore, studies related to corruption are on corruption and economic growth while those on the determinants of corruption in Nigeria were not empirical hence; this paper adopted the error correction mechanism and data from 1981 - 2016 to examine the socioeconomic determinants of corruption in Nigeria. The findings revealed that all the variables were difference stationary and there exists long run relationship among the variables. It was found that inflation rate and income inequality affect corruption positively in Nigeria while per capita income was found to have significant negative impact on corruption. Unemployment rate and population density were found to have insignificant impact on corruption. The study then recommends that government should ensure that inflation is brought under check through various policy formulations as this would reduce corrupt tendencies among the citizens. Policy makers should enhance per capita income as well as ensure equitable income distribution among the citizens as this may reduce corruption to its barest minimum in Nigeria.