EASE OF DOING BUSINESS, CORRUPTION AND DOMESTIC INVESTMENT NEXUS IN NIGERIA: A BOOTSTRAP ARDL APPROACH
Aliyu Umar , Jibrin Zakari and Ibrahim Haruna Abdulkarim
Volume 2 Issue 2
Abstract
Despite abundance studies on corruption-domestic investment nexus, little has been done to examine the connection between ease of doing business, corruption and domestic investment in Nigeria. Therefore, this study examines ease of doing business, corruption and domestic investment relationship in Nigeriafrom 2004Q1 to 2021Q4using recently developed Bootstrap ARDL approach.The results confirmed that there is a long-run relationship between ease of doing business, corruption,lending rate, GDP growth rate, saving and domestic investment. The outcomes from the estimation reveal that reducing corruption increases the level of domestic investment growth in Nigeria. Also, an increase in ease of doing business index promotes domestic investment in Nigeria. Therefore, the study recommends that; government should employ policies that will reduce corruption in order to raise domestic investment in the country. In particular, government can sustain the fight against corruption via increased funding of the anti-graft agencies. In addition, government should create enabling business environment for investment to grow through effective policies and programs. Keywords: Ease of Doing Business, Corruption, Domestic Investment, ARDL and Nigeria
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