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1 institutions include the independent c commission (ICPC) in 2000; the Eco Financial Crime Commission (EFCC) National Orientation Agency (NOE) Agency for food and Drug Administrat the police, customs, the judiciary immigration. 2) Fiscal responsibility Act was also enact Act requires publication of annual audite government agencies and public enterp months of the end of their financial year. Similarly, the present president of Niger Buhari, on assuming office in May, 2015 corruption drive in Nigeria. This shows the of corruption in Nigeria. Corruption in Niger finance, business investment and standard o burdens the private sector, deters fo undermines trust in government and effectiveness of public policy (Ulman & Buj

2 The political Bureau of the Federal Republ its 1987 report, outlines the corruption c include: the inflation of government contra kickbacks; frauds and fabrications of accou service, examination malpractices in o institutions; taking of bribes and perversion the various heinous crimes against the state and industrial sections of the economy. collusion with multinational companies invoicing of goods and foreign excha hoarding and smuggling. This definition cov corruption which have adverse conseq economy. In line with the above definition, El-Rufai ( that corruption covers a wide range of so ranging from massive fraud, extortion, bribery, nepotism, influence peddling, best to friends, rigging of elections, abuse of pub of fake or expired drugs, etc.

3 1994 through panel data technique. Using c as the dependent variable and change in import/gdp ratio and index of political righ variables and employing least squares metho change in inflation rate causes a positive significant effect on corruption. Ata (2009) examines the economic and affecting corruption for the 25 European countries for the period Using data analysis, the result shows that i corruption. Akca, Ata and Karaca (2012) investig inflation relationship using panel data t different economic level groups ( developing and developed countries) for t The results indicate that inflation

4 Real GDP (RGDP): This is independent growth rate of real GDP (RGDPr) is used. Democracy (DEMO): DEMO is dumm democracy which is used as a control Nigeria adopted stable democracy in 199 see how democracy channel has hel corruption in the country. DEMO is assig 1 from 1999 to date and 0 for other ye (showing absence of stable democracy). CPI was sourced from Transparency Interna independent variables (INF, M 2 and RGDPr from Central Bank of Nigeria (CBN) Sta 2016 edition. 3.2 Model Specification Based on the empirical literature, the long between corruption and inflation is specified

5 3.6 Period of the Study The study period covers International started publishing data on CP E View 9.0 version was the econometric estimate the data. Table 4.2: Results of Unit Roo ADF Statistic (with Trend Source: Authors Computation from E-Ve Variables Level 1 st difference C CORRUPT INF LM RGDPr

6 This implies that there is no cointegrati dependent variable (corruption) and indep (inflation, broad money supply, real GDP an Since there is no cointegration between the independent variables, it is not necessary t Correction Mechanism (ECM) to test fo dynamics of the series. Hence, regress performed using the variables at their dif integration. The empirical result of OLS is p Table 4.4 Result of OLS Dependent Variable: D(CORRUP Method: Least Squares Date: 08/30/18 Time: 13:43 Sample (adjusted): Included observations: 20 after adjustment Variable Coefficient Std. Error t-s C INF

7 inflation in Nigeria for the period series data on corruption perception ind collected from the Transparency Internat used to measure corruption. Data for t variables (Inflation rate, broad money su growth rate of real GDP) were collected f Bank of Nigeria (CBN) Statistical Bulletin, dummy variable for democracy was also assess how democracy has helped to redu Nigeria. ARDL approach, employing b cointegration was adopted to establish relationship between corruption and indepe Granger causality test was also conducted level of causation between corruption an independent variables. The empirical results show that there i relationship between corruption and indep (Inflation rate, broad money supply, econo

8 Journal of Applied Econometrics, 16, s2 [22] Philips, P.C.B. & Perron, P. (1988).Te root in time series regression. Biometica [23] Rose-Ackerman, S. (1999). Co Government: Causes, Consquences Cambridge, UK: Cambridge University [24] Tosun, M.U. (2002). A Public F Corruption. In S. Cingi, C. Guran & M Corruption and Efficient State. A Chamber of Commerce Publication. [25] Transparency International (2009 Perception Index. [26] Transparency International (2017 Perception Index. [27] Ulman, S.R. & Bujanca, G.V. (2014). Influence on the Macroeconomic Empirical Analysis on Countries Deve Procedia Economics and Finance,