Abstract
The Nigerian economy needs more investment, even after adopting a policy of trade liberalisation. Foreign capital inflows could help, but corruption is a major barrier. This study focused on how trade liberalisation affects corruption in Nigeria from 1990 to 2022. Secondary data collected from the Central Bank of Nigeria Statistical Bulletin report 2022. while data on control of corruption was sourced from World Governance Indicator and the data were analyzed applying the auto-regressive distributed lag model (ARDL). The results from the ARDL estimates demonstrated that in the short run at 5% critical value, trade liberalisation had a significant and positive impact on corruption (ΔTLP (-2)) = 0.7076; p=0.0031) while in the long run trade liberalisation (TLP) was insignificant in influencing corruption in Nigeria. Consequently, the study concludes that anticorruption policies and trade liberalisation separately reduce corruption in Nigeria. The study therefore recommends that the recent fiscal policy of the government towards autarky is ill-advised as result of the findings of this study which has confirmed that trade liberalisation entails policy direction that enhances the capacity of the economy to attract foreign capital inflows.
Published Version (
Free)
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 callMore From: International Journal of Developing and Emerging Economies
Disclaimer: 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.
