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The Effect of Corruption on Economic Growth: Empirical Evidence in East Africa

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  • Abdikarim Bashir Jama

    (Universiti Utara Malaysia)

Abstract

This paper analyzes the influence of corruption and other explanatory variables on the economic growth of East African countries over the period from 2013 to 2017. The study uses a panel data technique. Our empirical results found a negative effect of corruption on economic development. This gravitates to backing the “sand the wheels†hypothesis and controverts the “grease the wheels†proposition which suggests the possibility of corruption compensating the bad governance. Likewise, findings are obtained from the regulatory quality variable. However, regarding the other explanatory variables, the imported variable is statistically significant and has a positive effect on the economic growth of East African countries. While export and foreign direct investments are insignificant. Although various studies investigate the link between corruption and economic output very few studies focus on the East African region, therefore the result of this study is expected to offer robust evidence on policymakers, governments, and scholars.

Suggested Citation

  • Abdikarim Bashir Jama, 2021. "The Effect of Corruption on Economic Growth: Empirical Evidence in East Africa," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 5(6), pages 717-723, June.
    • Handle: RePEc:bcp:journl:v:5:y:2021:i:6:p:717-723
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