Corruption and Economic Growth: The Case of EMCCA

Ondo, Assoumou

doi:10.4236/tel.2017.75088

Cited by 25 publications

(25 citation statements)

References 33 publications

(41 reference statements)

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“…However, those opposing this view noted that the greasing effect of corruption is only possible as a second best option in a bad institutional setting (Campos & Dimova, 2010). It is contrary to the result obtained by Boussalham (2018) and Tidiane (2019, Ondo (2017), Grindler et al (2019 and Bitterhout (2020) who found inverse relationship between corruption and economic growth.…”

Section: Resultsmentioning

confidence: 59%

“…They further found that investment, population, democracy freedom and economic freedom have direct impact on economic growth. Ondo (2017) considered the relationship between corruption and economic growth in the Economic and Monetary Community of Central Africa and data within the period 2005 to 2015.They found that corruption, civil liberty, human capital and public spending have inverse relationship with economic growth in the community while private investment and commercial opening have positive relationship with economic growth. While civil liberty and private investment were significant at 1% level of significance, corruption was significant at 10% level of significance and noted that corruption may have a non-linear effect on economic growth.…”

Section: Introductionmentioning

confidence: 99%

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Corruption and Economic Growth in West Africa

Ighodaro

Igbinedion

2020

jejak

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The level of corruption in West Africa has become very worrisome based on the data from the corruption perception index of transparency international. Corruption may subvert due process; reduce accountability; lead to unequal distribution of goods and services and limit the reliance of the masses on government. The objective of the paper was to examine the link between corruption and economic growth in West Africa. Data used span from 2000 to 2018 with a cross section of fifteen West Africa countries and the use of panel fully modified ordinary least squares. With the use of the Im, Pesaran, and Shin stationarity which allows for heterogeneous version of the Dickey Fuller test, it was found that the variables used were integrated of order one and long run equilibrium relationship existed based on the Pedroni cointegration method. Only foreign direct investment did not meet the a priori expectation. The result supports the ‘grease on the wheel hypothesis’. This implies that corruption and economic growth have direct relationship in West Africa. Corruption and economic growth were found to also support the U-shaped hypothesis which means that different corruption level affect economic growth in different ways. However, corruption does not lead to efficient and effective outcomes hence should not be allowed at any level of governance.

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Section: Resultsmentioning

confidence: 59%

Section: Introductionmentioning

confidence: 99%

Corruption and Economic Growth in West Africa

Ighodaro

Igbinedion

2020

jejak

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“…In response to one unit improvement in economic freedom, there is a statistically significant impact of 27% on fraud, again 27% in the case of an increase in poverty (Bosco 2016 found also a positive relation), a negative 90% in response to political stability (most studies identified a negative relationship, such as Nur-tegin and Czap 2012; Schumacher 2013; Turedi and Altiner 2016), 69% in the case of type of government (Achim et al 2018), a huge 20% in the case of inflation (positive relation between inflation and corruption or fraud was also found by Al-Marhubi 2000;Ata and Arvas 2011;Turedi and Altiner 2016;Omidi et al 2017), 20% in the case of gross domestic product, and 9% in the case of business operational risk (this relation was also obtained by Saha and Gounder 2013;Wang 2016;Ondo 2017).…”

Section: Fixed Effect Model I Fixed Effect Model-cs Fixed Dummy Variablesmentioning

confidence: 80%

“…Moreover, in an adverse economic environment, fraudulent activities are likely to increase, as in a recession people's income decreases and companies' financial resources for managing and investigating fraud are scarce (Gill 2011). However, some research has provided empirical support for a positive relation between these two indicators, particularly for developing economies (Saha and Gounder 2013;Wang 2016;Ondo 2017). The countries with a higher GDP are less corrupt than those with a lower GDP, but countries with a medium level of GDP are identified to be more corrupt than nations with a lower level of GDP (Saha and Gounder 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

Economic and Non-Economic Variables Affecting Fraud in European Countries

Ahmad

Ciupac-Ulici

Beju

2021

Risks

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Fraud is one of the most harmful phenomena, because it leads to collapse of organizations, causes economic downfall of countries, and destroys faith in a country’s capital markets. The impact of fraud is complex and has varying degrees depending on political and financial institutional structures of a country. In this paper, we investigate the combined effect of economic and non-economic variables on fraud using a sample of 41 developed, in transition, and developing European countries. The data cover the period July 2014–December 2020. Panel data techniques of pooled estimation and the dynamic panel data/generalized method of moments (DPD/GMM) is used, keeping in view the endogeneity perspective. Nevertheless, two-way impacts of fixed effect model estimation—cross-sectional and time-based (panel) effects (alternatively)—are used for analyzing the relationship among the given variables, based on Hausman specification test results. Empirical results of panel data extended REM and FEM approaches with country-specific cross-sectional effects showing that political stability, economic freedom, poverty, and GDP significantly affect fraud proliferation. Political stability is appraised to be the most scoring determinant of fraud incidence in a country.

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“…investigates the relationship between corruption and economic development in 13 Asia-Pacific countries and observes that South Korea and China are record progress in economic advancement despite the rise in corruption cases Jiang and Nie (2014). also report China's miracle of progressive economic growth despite the increasing trend of corruption Ondo (2017). investigates the relationship between corruption and economic growth in the member countries of the Economic and Monetary Community of Central Africa (EMCCA).…”

mentioning

confidence: 99%

Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test

Kwadwo¹,

Kong²,

Musah³

et al. 2020

The Economics and Finance Letters

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This paper seeks to ascertain the relationship between corruption and economic growth in Ghana using time-series secondary data for the period 1984-2016. We employ autoregressive distributed lags (ARDL) model to estimate the long-term relationship between corruption and economic growth in Ghana. Corruption is estimated to have a significant negative effect on per capita growth both in the short-term and long-term. While trade openness shows a positive effect on growth, inflation and capital formation show a significant negative influence on growth. We find the variables to be cointegrated and both the long-run and short-run parameters provide evidence of a negative relationship between corruption and economic growth. While capital formation and inflation also show negative effect on growth, trade openness shows a positive effect. The government should endeavour to effectively combat the destructive phenomena of corrupt practices that weaken the institutional quality through the adoption of functional regulatory measures. Transparency of governmental functions should be enhanced through the active involvement of citizens in governance as well as minimizing the discretion at the disposal of bureaucrats. Contribution/Originality: This paper contributes to the existing literature by introducing corruption in an endogenous growth model in the context of Ghana. The paper is the first attempt to employ unique Ghanaian data to estimate the long-term effects of corruption on economic growth, a focused evaluation than has been previously done. of political and economic systems. Its definition streams from the broad terms of "misuse of public power" and "moral decay" to strict legal conceptualization as an act of bribery involving a public servant and a transfer of tangible resources (Andvig, Fjeldstad, Amundsen, Sissener, & Soreide, 2000). The Transparency International refers to corruption as "the abuse of entrusted power for private gain" (Kolstad, 2008). The World Bank also

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Corruption and Economic Growth: The Case of EMCCA

Cited by 25 publications

References 33 publications

Corruption and Economic Growth in West Africa

Corruption and Economic Growth in West Africa

Economic and Non-Economic Variables Affecting Fraud in European Countries

Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test

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