Corruption, foreign direct investment and its impact on exchange rate of the Nigerian economy

Abstract

This paper seeks to analyze corruption, foreign direct investment and its impact on exchange of the Nigerian economy. The ultimate objective of this study centers on an empirical investigation of the impact of corruption, foreign direct investment and its impact on exchange rate of the Nigerian economy. In order to achieve these objectives the study used the ordinary least squares regression analyses, augmented dickey fuller unit root test and the co-integration test. The unit root test revealed that all the variables were stationary at first difference and the short run result revealed that corruption is very high in Nigeria and that have help to depreciate the currency of the country with regards its exchange to other currencies. The study recommends that war against corruption or state of emergency on corruption should be vigorously pursued, this will help to remold the image of the Nigerian economy and encourage more foreign investors that will help to equate our exchange rate to other currencies.