Abstract
This paper seeks to analyze corruption, foreign direct investment and its impact on exchange of the Nigerian economy. The ultimate objective of this study centers on an empirical investigation of the impact of corruption, foreign direct investment and its impact on exchange rate of the Nigerian economy. In order to achieve these objectives the study used the ordinary least squares regression analyses, augmented dickey fuller unit root test and the co-integration test. The unit root test revealed that all the variables were stationary at first difference and the short run result revealed that corruption is very high in Nigeria and that have help to depreciate the currency of the country with regards its exchange to other currencies. The study recommends that war against corruption or state of emergency on corruption should be vigorously pursued, this will help to remold the image of the Nigerian economy and encourage more foreign investors that will help to equate our exchange rate to other currencies . DOI: 10.5901/mjss.2013.v4n3p345
Highlights
Wide spread corruption seems to be one of the main factors that prevent poor and developing countries to catch up with the rich and developed ones
On the other hand the unanimous view supported by World Bank, United Nations Development Programme (UNDP), Organization of Economic Cooperation and Development (OECD) and a host of many writers (Mauro, 1995; Wei, 1995; Kauffmann, 1997; Mo, 2001; Aliyu and Elijah, 2008) was that corruption exerts long term adverse effects on macroeconomic growth and development
The current specification and estimation of our model require that we test the time series properties of data in order to determine whether or not the variables contain integrated components
Summary
Wide spread corruption seems to be one of the main factors that prevent poor and developing countries to catch up with the rich and developed ones. Bribery is perceived to help grease the wheel from immediate transaction and contractual businesses This view was based mainly on “coarsion theory” which states that market transactions are costless; a rearrangement of right will always takes place if it leads to an increase in production value On the other hand the unanimous view supported by World Bank, United Nations Development Programme (UNDP), Organization of Economic Cooperation and Development (OECD) and a host of many writers (Mauro, 1995; Wei, 1995; Kauffmann, 1997; Mo, 2001; Aliyu and Elijah, 2008) was that corruption exerts long term adverse effects on macroeconomic growth and development The transmission of these adverse effects include declined domestic and foreign investment, increased cost of doing business and production, increased inequality and poverty, misallocation of national resources among others (Aliyu and Elijah, 2008)
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
