Statistical analyses on the correlation of corruption perception index and some other indices in Nigeria

Abstract

This study investigated the statistical analysis of Corruption Perception Index (CPI) in Nigeria considering some other indices which are, Human Development Index (HDI), Global Peace Index (GPI) and Global Hunger Index (GHI). Data set was standardized using two different methods due to the different units and scales used in measuring the indices. Analyses were carried out on the two standardized data sets resulting in different covariance matrices but same correlation matrices, multiple and partial correlation coefficients. Hypothesis testing was carried out on both multiple and partial correlation coefficient at 5% level of significance. Result shows that a slight positive correlation exists between CPI and HDI, CPI and GHI (which implies that as CPI is increasing, HDI is also increasing, same for CPI and GHI) while a slight negative correlation exists between CPI and GPI (which implies a reverse). The partial correlation analysis carried out on the standardized data set indicates that a slight positive relationship exists between CPI and HDI holding GHI and GPI constant, a fair positive relationship exists between CPI and GHI holding HDI and GPI constant (which implies that without considering the effect of GPI, as CPI is decreasing, GHI and HDI are  also decreasing) , a fair negative relationship exists between CPI and GPI holding HDI and GHI constant (without considering the effect of HDI and GHI, as CPI is decreasing, GPI is also decreasing) holding CPI constant a fair positive relationship exist between HDI and GHI(without considering the effect of CPI, as HDI is increasing, GHI is also increasing, a moderate positive relationship exists between HDI and GPI and a substantial positive correlation exists between GHI and GPI. Multiple correlation analyses were also carried out on the standardized data set which indicates a moderate positive relationship. Generally, CPI and HDI have dominant effect on the national economy.