THE NEXUS BETWEEN CORRUPTION AND UNEMPLOYMENT IN NIGERIA: AN EMPIRICAL EVALUATION (1991-2022)

Abstract

The study examined the nexus between corruption and unemployment in Nigeria, using secondary time series data from 1991 to 2022. It adopted the econometric techniques of the Ordinary Least Square and the ARDL Error correction for the analysis of data. The Augumented Dickey Fuller test was used for stationarity status of the variables while the ARDL bound test was used to ensure the existence of long-run relationship among the variables. The results revealed that only unemployment rate is stationary at level, while inflation rate, foreign direct investment and population growth rate were stationary at the first-order difference. It was also found that a long-run equilibrium relationship existed among the variables. Furthermore, the regression result showed that inflation rate and population growth rate significantly and positively influenced unemployment rate while corruption index and foreign direct investment negatively and insignificantly impact unemployment rate in Nigeria within the period estimated. Lastly, about 2 percent dis-equilibrium in unemployment rate in Nigeria will be corrected per period and it was found to be negative and statistically significant. The study also proffered various policies options which the government can implement to address the issue of unemployment, curb higher corruption index and achieve higher living standards for its populace.