Testing the Causal Link Between Anti-Graft Agencies Practices and Good Governance in Nigeria Using Autoregressive Distributed Lag Approach(ARDL)

Abstract

The study examines the causal link between the anti-graft agencies practices and good governance in Nigeria. We employed purposive sampling technique where 400 copies of questionnaires were distributed to professional accountants, bankers, journalist and lawyers. The data collected were analysed using both descriptive and inferential statistics. We seek to find out if there exist, significant or causal relationship between our exogenous variable, antigraft agencies practices, proxied by admin/professional etiquette (LAPE) and Efficiency on prosecution and obedience to the rule of law (LEPL); and our endogenous variable, good governance(LGGP). By using autoregressive distributed lag approach (ARDL) and Granger causality test, we aim at establishing which of our exogenous variable has significant or causal effect on good governance in Nigeria. The analysis of the outcomes led to the conclusion that none of our exogenous variable has significant relationship with good governance but though, there exist a uni-directional causality from admin/professional etiquette to good governance practices.  The study also revealed the existence of a long run relationship among the variables under study. The study recommends amendment of the extant laws establishing the anti-graft agencies for operational efficiency in prosecution, responsiveness to the constitution and adequate training for officials in order for the Nigerian state to benefit maximally from these agencies.

Keywords: Rule of law, Anti-graft agencies, Government, Corruption, ARDL

DOI: 10.7176/RJFA/11-10-04

Publication date:May 31^st 2020