Economic Growth In Nigeria

1780 Words8 Pages
corruption is to become theoretical and less descriptive, it must develop a framework and methodology that will help to measure its effect on economic growth.

2.2.2 Economic Growth Theory
This theory was propounded in reactions to the deficiencies in the Slow-Swan growth theory by Arrow (1962); Lucas (1988); and Romer (1990). This theory is to lay more emphasis on the long-run growth rate of an economy and on the basis of endogenous factors rather than neoclassical growth theory. The Slow-Swan model explains that the long-run growth of output is based on two basic exogenous variables such as population growth rate and level of corruption in the country. Though this theory believes that economic growth is linked with improvement in productivity
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Adenike (2013) empirically investigated the impact of corruption on economic growth in Nigeria on an annual time series data from 1980-2009 using regression analysis. The empirical result reveals that corruption per worker exerts a negative influence on output per worker directly and also indirectly on foreign private investment, expenditure on education and capital expenditure per worker. Furthermore, the study reveals that there is a one-sided causality where the direction of influence runs from output to corruption per worker.
Obayelu (2007) in his review of the effect of corruption and economic reforms on economic growth and development: lesson from Nigeria, found that there have been significant reduction in the level of corruption in the country through the introduction of government anti-corrupt instruments.
Owolabi (2010) in his work opined that for any economy to develop and grow, the financial sector must be strong, solid, effective and efficient. The existence of an effective financial institution is a penacea to growing any economy.
Idowu (2009) did a research n the means of minimizing the incidence of fraud in the Nigeria banking industry. Findings of the study reveals that, so many factors contributed to incidence f fraud in banks amongst which are poor managment of policies and procedures, inadequate working conditions, bank staff staying longer on a particular job and staff feeling fraustratedas a result of poor
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Since the population size is within manageable size, the population size was used and conclusion was drawn from the population on the data collected from the period of 2001 to 2015.

3.4 Method of Data Collection
Methods of data collection can be classified into Primary data and Secondary data.
Primary Data: this involves gathering of information from the original source by the researcher and his agent through the use of questionnaires, personal interview, personal observation etc.
Secondary Data: as the name implies can be seen as already existing published information or data which relates to the research topic. That is data extracted from other peoples work such as journals, textbooks, magazines etc.
In this study, the data used to conduct the research are secondary data derived from the Central Bank of Nigeria (CBN) Statistical Bulletin, Nigeria Depsit Insurance Corporation (NDIC) and Financial Institute Training Centre (FITC) as regards fraud and forgeries in the Nigeria banking industry.

3.5 Measurement/Operationalization of Variables
The operational variables involve in this research are gross domestic product, fraud and forgeries which are divided into dependent and independent variable
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