THE JOINT IMPACT OF STOCK MARKET AND CORRUPTION ON ECONOMIC GROWTH AND DEVELOPMENT IN NIGERIA: EVIDENCE FROM COINTEGRATION AND VECM ANALYSIS
This paper studies the effect of capital market on economic growth in the presence of corruption in the Nigerian context. We employed the use of cointegration and Vector Error Correction Model (VECM). We find out that both corruption and capital market has long run associationship with economic d...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
University in Belgrade
2015-11-01
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| Series: | Serbian Journal of Management |
| Subjects: | |
| Online Access: | http://www.sjm06.com/SJM%20ISSN1452-4864/10_2_2015_November_141_277/10_2_2015_189_200.pdf |
| Summary: | This paper studies the effect of capital market on economic growth in the presence of corruption
in the Nigerian context. We employed the use of cointegration and Vector Error Correction Model
(VECM). We find out that both corruption and capital market has long run associationship with
economic development in Nigeria but has no short run relationship. This simply means that there is
short run gain and long run pain for the Nigerian economy if corruption and capital market are not
checked and well regulated respectively in Nigeria. We therefore recommend that government should
strengthen the anti-graft agencies and equip them technologically and make them independent,
educate the public on the problems associated with corrupt practices and the economic implication
especially through the capital market and encourage local investors to invest in the capital market to
improve liquidity and profitability of the Nigerian capital market. |
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| ISSN: | 1452-4864 2217-7159 |