IDEAS home Printed from https://ideas.repec.org/a/rau/journl/v14y2019i2p40-54.html
   My bibliography  Save this article

The Impact Of Corruption On Economic Growth In Mena Region

Author

Listed:
  • Jihène Sbaouelgi

    (University Tunis Carthage)

Abstract

This paper examines the impact of corruption on investments and economic growth of countries from the MENA region over the period 1990-2017. The extent of corruption and the practice of democratic life are often cited as the main factors that affect the volume of public and private investments. For this work, we use a dynamic panel data model. According to the results, we show empirically that political institutions have a positive effect on investment and growth moreover corruption has a negative effect on economic growth through its effect on investment.

Suggested Citation

  • Jihène Sbaouelgi, 2019. "The Impact Of Corruption On Economic Growth In Mena Region," Romanian Economic Business Review, Romanian-American University, vol. 14(2), pages 40-54, June.
    • Handle: RePEc:rau:journl:v:14:y:2019:i:2:p:40-54
    as

    Download full text from publisher

    File URL: http://www.rebe.rau.ro/RePEc/rau/journl/SU19/REBE-SU19-A4.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Paul Collier, 2000. "How to Reduce Corruption," African Development Review, African Development Bank, vol. 12(2), pages 191-205.
    2. Omotunde E. G. Johnson, 1975. "An Economic Analysis Of Corrupt Government, With Special Application To Less Developed Countries," Kyklos, Wiley Blackwell, vol. 28(1), pages 47-61, January.
    3. Andrew Williams & Abu Siddique, 2008. "The use (and abuse) of governance indicators in economics: a review," Economics of Governance, Springer, vol. 9(2), pages 131-175, May.
    4. N. Gregory Mankiw & David Romer & David N. Weil, 1992. "A Contribution to the Empirics of Economic Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 107(2), pages 407-437.
    5. Luca Correani, 2005. "Preferences, Development and Corruption Trap," Economia politica, Società editrice il Mulino, issue 2, pages 177-200.
    6. Oliver E. Williamson, 2000. "The New Institutional Economics: Taking Stock, Looking Ahead," Journal of Economic Literature, American Economic Association, vol. 38(3), pages 595-613, September.
    7. Unknown, 1986. "Letters," Choices: The Magazine of Food, Farm, and Resource Issues, Agricultural and Applied Economics Association, vol. 1(4), pages 1-9.
    8. Murphy, Kevin M & Shleifer, Andrei & Vishny, Robert W, 1993. "Why Is Rent-Seeking So Costly to Growth?," American Economic Review, American Economic Association, vol. 83(2), pages 409-414, May.
    9. Macrae, John, 1982. "Underdevelopment and the economics of corruption: A game theory approach," World Development, Elsevier, vol. 10(8), pages 677-687, August.
    10. Fedeli, Silvia & Forte, Francesco, 2003. "Public Co-financing of Private Sector's Investments: Subsidiarity and Corruption," Public Choice, Springer, vol. 116(1-2), pages 109-145, July.
    11. Pereira, Alfredo M. & de Frutos, Rafael Flores, 1999. "Public Capital Accumulation and Private Sector Performance," Journal of Urban Economics, Elsevier, vol. 46(2), pages 300-322, September.
    12. Libor Dušek & Andreas Ortmann & Lubomír Lízal, 2005. "Understanding Corruption and Corruptibility Through Experiments," Prague Economic Papers, Prague University of Economics and Business, vol. 2005(2), pages 147-162.
    13. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-781, August.
    14. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Bakari, Sayef, 2023. "The nexus between domestic investment and economic growth in MENA countries; Does unemployment matter?," MPRA Paper 118349, University Library of Munich, Germany.
    2. Mounir Belloumi & Atef Saad Alshehry, 2021. "The Causal Relationships Between Corruption, Investments and Economic Growth in GCC Countries," SAGE Open, , vol. 11(4), pages 21582440211, October.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kouramoudou Keita & Hannu Laurila, 2016. "Efficient Corruption? Testing the hypothesis in African countries," Working Papers 1699, Tampere University, Faculty of Management and Business, Economics.
    2. Knobel, Alexander (Кнобель, Александр) & Chokaev, Bekhan (Чокаев, Бекхан) & Mironov, Alexey (Миронов, Алексей), 2015. "Comparative Analysis of the Effectiveness of Public Spending in the Field of National Defense and Law Enforcement [Сравнительный Анализ Эффективности Госрасходов В Сфере Национальной Обороны И Прав," Published Papers mn47, Russian Presidential Academy of National Economy and Public Administration.
    3. Maurizio Lisciandra & Emanuele Millemaci, 2017. "The economic effect of corruption in Italy: a regional panel analysis," Regional Studies, Taylor & Francis Journals, vol. 51(9), pages 1387-1398, September.
    4. Noel Johnson & Courtney LaFountain & Steven Yamarik, 2011. "Corruption is bad for growth (even in the United States)," Public Choice, Springer, vol. 147(3), pages 377-393, June.
    5. Bosco, Bruno, 2016. "Old and new factors affecting corruption in Europe: Evidence from panel data," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 66-85.
    6. Akindele Tolulope T., 2020. "Institutional Reform and Corruption on Economic Growth of Nigeria," Proceedings of the 18th International RAIS Conference, August 17-18, 2020 008att, Research Association for Interdisciplinary Studies.
    7. Gupta, Sanjeev & de Mello, Luiz & Sharan, Raju, 2001. "Corruption and military spending," European Journal of Political Economy, Elsevier, vol. 17(4), pages 749-777, November.
    8. Rock, Michael T. & Bonnett, Heidi, 2004. "The Comparative Politics of Corruption: Accounting for the East Asian Paradox in Empirical Studies of Corruption, Growth and Investment," World Development, Elsevier, vol. 32(6), pages 999-1017, June.
    9. Ferris, Stephen P. & Hanousek, Jan & Tresl, Jiri, 2021. "Corporate profitability and the global persistence of corruption," Journal of Corporate Finance, Elsevier, vol. 66(C).
    10. Hainz, Christa & Boerner, Kira, 2005. "The Political Economy of Corruption and and the Role of Financial Institutions," Proceedings of the German Development Economics Conference, Kiel 2005 6, Verein für Socialpolitik, Research Committee Development Economics.
    11. Bertrand Venard, 2013. "Institutions, Corruption and Sustainable Development," Post-Print hal-00874275, HAL.
    12. Börner, Kira & Hainz, Christa, 2004. "The Political Economy of Corruption and the Role of Financial Institutions," Discussion Papers in Economics 411, University of Munich, Department of Economics.
    13. Andrew Hodge & Sriram Shankar & D. S. Prasada Rao & Alan Duhs, 2011. "Exploring the Links Between Corruption and Growth," Review of Development Economics, Wiley Blackwell, vol. 15(3), pages 474-490, August.
    14. Yakira Fernández-Torres & Milagros Gutiérrez-Fernández & Julián Ramajo-Hernández, 2018. "Business Regulation And Economic Growth: The Indirect Effect Of Corruption In Latin America And The Caribbean," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 23(01), pages 1-22, March.
    15. Bertrand Venard, 2013. "Institutions, Corruption and Sustainable Development," Economics Bulletin, AccessEcon, vol. 33(4), pages 2545-2562.
    16. Liu, Baohua & Lin, Yan & Chan, Kam C. & Fung, Hung-Gay, 2018. "The dark side of rent-seeking: The impact of rent-seeking on earnings management," Journal of Business Research, Elsevier, vol. 91(C), pages 94-107.
    17. Pierre-Guillaume Méon & Khalid Sekkat, 2005. "Does corruption grease or sand the wheels of growth?," Public Choice, Springer, vol. 122(1), pages 69-97, January.
    18. Toke S. Aidt, 2009. "Corruption, institutions, and economic development," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 25(2), pages 271-291, Summer.
    19. Weiss, Eli & Rosenblatt, David, 2010. "Regional economic growth in Mexico : recent evolution and the role of governance," Policy Research Working Paper Series 5369, The World Bank.
    20. E. Tsanana & X. Chapsa & C. Katrakilidis, 2016. "Is growth corrupted or bureaucratic? Panel evidence from the enlarged EU," Applied Economics, Taylor & Francis Journals, vol. 48(33), pages 3131-3147, July.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rau:journl:v:14:y:2019:i:2:p:40-54. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Alex Tabusca (email available below). General contact details of provider: https://edirc.repec.org/data/ferauro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.