MODERATING EFFECT OF CORRUPTION AND EASE OF DOING BUSINESS ON THE RELATIONSHIP BETWEEN DEFENCE EXPENDITURE AND ECONOMIC GROWTH IN NIGERIA

ABSTRACT

This study examines the moderating effect of corruption and the ease of doing business on the relationship between defence expenditure and economic growth in Nigeria. The study adopted the ex-post facto research design with times series data collected from theStockholm International Peace Research Institute (SIPRI) and the Nigerian Code of Conduct Bureau from 1989-2019. Ordinary least square regression analysis was used as the major technique of data analysis. The result indicated that, the interactive effect of corruption with defence expenditure had negative and significant effect on economic growth in Nigeria. In addition, the moderating effect of the ease of doing business with defence expenditure had insignificant positive effect on economic growth. The study recommended that the anti corruption fight should be strengthened in the defence sector by creating an oversight board to monitor the defence expenditure and ensure that such expenditures are tailored towards the interest of the general public. Also, government should look at improving the ease of doing business parameters by implementing the amended Companies and Allied Matters Act and making simpler business regulations for small and medium scale enterprises to ensuring strong protections for business growth.  

Key words: Defence Expenditure, Economic Growth, Corruption, Ease of doing Business, Recurrent Expenditure and Capital Expenditure.