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Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting

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  • Asongu, Simplice A

Abstract

Purpose – This paper assesses the determinants of corruption-control with freedom dynamics (economic, political, press and trade), government quality and a plethora of socio-economic factors in 46 African countries using updated data. Design/methodology/approach – A quantile regression approach is employed while controlling for the unobserved heterogeneity. Principal component analysis is also used to reduce the dimensions of highly correlated variables. Findings – With the legal origin fundamental characteristic, the following findings have been established. (1) While political freedom increases corruption-control (CC) in a bottom quantile of English common law countries, there is no such evidence in their French civil law counterparts. (2) Government quality consistently improves CC across all quantiles in English common law countries but fails to exert the same effect in middle quantiles of French civil law countries. (3) Economic freedom ameliorates CC only in common law countries with low existing CC levels (bottom quantiles). (4) We find no significant evidence of a positive ‘press freedom’-CC nexus and having the status of Low income English common law (French civil law) countries decreases (increases) CC. From a religious domination scenario, we also find the following. (1) Political and trade freedoms only reduce CC in Christian dominated countries while press freedom has a mitigation effect in both religious cultures (though more consistent across quantiles of Christian-oriented countries). (2) Government quality is more pro-CC in Christian than in Muslim-dominated countries. (3) While economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. (4) Having a low-income status in countries with Christian common law tradition improves CC. Originality/value – We complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 52209.

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Date of creation: Sep 2013
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Handle: RePEc:pra:mprapa:52209

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Keywords: Corruption; Freedom; Government quality; Quantile regression; Africa;

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  1. Simplice A, Asongu, 2012. "Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa," MPRA Paper 42466, University Library of Munich, Germany.
  2. Simplice A Asongu & Jellal Mohamed, 2013. "On the channels of foreign aid to corruption," Economics Bulletin, AccessEcon, vol. 33(3), pages 2191-2201.
  3. Rafael LaPorta & Florencio Lopez de-Silanes & Andrei Shleifer & Robert W. Vishny, 1996. "Law and Finance," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1768, Harvard - Institute of Economic Research.
    • La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert W., 1998. "Law and Finance," Scholarly Articles 3451310, Harvard University Department of Economics.
    • Rafael La Porta & Florencio Lopez-de-Silane & Andrei Shleifer & Robert W. Vishny, 1996. "Law and Finance," NBER Working Papers 5661, National Bureau of Economic Research, Inc.
    • Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, . "Law and Finance," Working Paper 19451, Harvard University OpenScholar.
  4. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, 1998. "The Quality of Goverment," NBER Working Papers 6727, National Bureau of Economic Research, Inc.
  5. Simplice A, Asongu, 2012. "Fighting corruption when existing corruption-control levels count : what do wealth-effects tell us in Africa?," MPRA Paper 42180, University Library of Munich, Germany.
  6. Kyle Peyton & Ariel R. Belasen, 2012. "Corruption in Emerging and Developing Economies: Evidence from a Pooled Cross-Section," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 48(2), pages 29-43, March.
  7. Asongu Simplice, 2012. "Fighting software piracy in Africa: how do legal origins and IPRs protection channels matter?," Working Papers 12/016, African Governance and Development Institute..
  8. Simplice A, Asongu, 2012. "On the effect of foreign aid on corruption," MPRA Paper 36545, University Library of Munich, Germany.
  9. Okada, Keisuke & Samreth, Sovannroeun, 2011. "The effect of foreign aid on corruption: A quantile regression approach," MPRA Paper 27969, University Library of Munich, Germany.
  10. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers 11/019, African Governance and Development Institute..
  11. Billger, Sherrilyn M. & Goel, Rajeev K., 2009. "Do existing corruption levels matter in controlling corruption?: Cross-country quantile regression estimates," Journal of Development Economics, Elsevier, Elsevier, vol. 90(2), pages 299-305, November.
  12. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 35(3), pages 1320-1346, September.
  13. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer, Springer, vol. 39(1), pages 31-36, March.
  14. Asongu Simplice, 2013. "On the effectiveness of foreign aid in institutional quality," Working Papers 13/017, African Governance and Development Institute..
  15. Saha, Shrabani & Gounder, Rukmani & Su, Jen-Je, 2009. "The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis," Economics Letters, Elsevier, Elsevier, vol. 105(2), pages 173-176, November.
  16. Lalountas, Dionisios A. & Manolas, George A. & Vavouras, Ioannis S., 2011. "Corruption, globalization and development: How are these three phenomena related?," Journal of Policy Modeling, Elsevier, Elsevier, vol. 33(4), pages 636-648, July.
  17. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, Elsevier, vol. 76(3), pages 399-457, June.
  18. Simplice A, Asongu & Oasis, Kodila-Tedika, 2013. "State fragility, rent seeking and lobbying: evidence from African data," MPRA Paper 44066, University Library of Munich, Germany.
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