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

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  • Asongu Simplice

Abstract

Purpose - – The purpose of this paper is to assess the determinants of corruption-control (CC) with freedom dynamics (economic, political, press and trade), government quality (GQ) 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. First, while political freedom increases CC in a bottom quantile of English common-law countries, there is no such evidence in their French civil-law counterparts. Second, GQ 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. Third, economic freedom ameliorates CC only in common-law countries with low existing CC levels (bottom quantiles). Fourth, The authors 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, the authors also find the following. First, 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). Second, GQ is more pro-CC in Christian than in Muslim-dominated countries. Third, while economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. Fourth, having a low-income status in countries with Christian common-law tradition improves CC. Originality/value - – The authors complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies.

Suggested Citation

  • Asongu Simplice, 2014. "Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting," International Journal of Social Economics, Emerald Group Publishing, vol. 41(10), pages 906-922, October.
  • Handle: RePEc:eme:ijsepp:v:41:y:2014:i:10:p:906-922
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    References listed on IDEAS

    as
    1. Simplice A. Asongu, 2013. "Fighting Corruption when Existing Corruption-Control Levels Count: What do Wealth-Effects Tell us in Africa?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 53-74, October.
    2. Simplice A. Asongu, 2014. "Finance and Democracy in Africa," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 6(3), pages 92-116, October.
    3. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    4. Simplice A Asongu, 2012. "On the effect of foreign aid on corruption," Economics Bulletin, AccessEcon, vol. 32(3), pages 2174-2180.
    5. Simplice A. Asongu, 2013. "Fighting corruption in Africa: do existing corruption-control levels matter?," International Journal of Development Issues, Emerald Group Publishing, vol. 12(1), pages 36-52, April.
    6. Simplice Asongu, 2013. "Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa," Journal of Business Ethics, Springer, vol. 118(1), pages 45-60, November.
    7. Simplice A Asongu & Jellal Mohamed, 2013. "On the channels of foreign aid to corruption," Economics Bulletin, AccessEcon, vol. 33(3), pages 2191-2201.
    8. Rafael La Porta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert W. Vishny, 1998. "Law and Finance," Journal of Political Economy, University of Chicago Press, vol. 106(6), pages 1113-1155, December.
    9. Simplice Asongu, 2015. "Fighting Software Piracy in Africa: How Do Legal Origins and IPRs Protection Channels Matter?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(4), pages 682-703, December.
    10. Okada, Keisuke & Samreth, Sovannroeun, 2012. "The effect of foreign aid on corruption: A quantile regression approach," Economics Letters, Elsevier, vol. 115(2), pages 240-243.
    11. Simplice Asongu, 2014. "Globalization (fighting), corruption and development: How are these phenomena linearly and nonlinearly related in wealth effects?," Journal of Economic Studies, Emerald Group Publishing, vol. 41(3), pages 346-369, May.
    12. Simplice A. Asongu, 2015. "Law,Finance, Economic Growth and Welfare: Why Does Legal Origin Matter?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, vol. 7(2), pages 30-55, July.
    13. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    14. Asongu, Simplice A., 2013. "On the effectiveness of foreign aid in institutional quality," European Economic Letters, European Economics Letters Group, vol. 2(1), pages 12-19.
    15. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers of the African Governance and Development Institute. 11/019, African Governance and Development Institute..
    16. Kyle Peyton & Ariel R. Belasen, 2012. "Corruption in Emerging and Developing Economies: Evidence from a Pooled Cross-Section," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 48(2), pages 29-43, March.
    17. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer;The Psychometric Society, vol. 39(1), pages 31-36, March.
    18. Oasis Kodila-Tedika & Asongu Simplice, 2016. "State fragility, rent seeking and lobbying: evidence from African data," International Journal of Social Economics, Emerald Group Publishing, vol. 43(10), pages 1016-1030, October.
    19. 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, vol. 90(2), pages 299-305, November.
    20. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
    21. repec:hrv:faseco:30747160 is not listed on IDEAS
    22. 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, vol. 105(2), pages 173-176, November.
    23. 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, vol. 33(4), pages 636-648, July.
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    Citations

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    Cited by:

    1. Asongu Simplice, 2015. "Determinants of health professionals’ migration in Africa: a WHO based assessment," International Journal of Social Economics, Emerald Group Publishing, vol. 42(7), pages 666-686, July.
    2. Asongu , Simplice A., 2015. "On the dynamic effects of foreign aid on corruption," European Economic Letters, European Economics Letters Group, vol. 4(1), pages 5-10.
    3. Simplice Asongu, 2015. "On Taxation, Political Accountability and Foreign Aid: Empirics to a Celebrated Literature," South African Journal of Economics, Economic Society of South Africa, vol. 83(2), pages 180-198, June.
    4. Simplice A. Asongu & Mohamed Jellal, 2014. "Foreign aid, investment and fiscal policy behavior: theory and empirical evidence," Research Africa Network Working Papers 14/030, Research Africa Network (RAN).
    5. Simplice A. Asongu & Jacinta C. Nwachukwu, 2016. "Foreign aid and governance in Africa," International Review of Applied Economics, Taylor & Francis Journals, vol. 30(1), pages 69-88, January.
    6. Asongu Simplice, 2014. "The Evolving Debate on the Effect of Foreign Aid on Corruption and Institutions in Africa," Working Papers of the African Governance and Development Institute. 14/009, African Governance and Development Institute..
    7. Kar, Ashim Kumar, 2016. "Aid and Human Development: Is There A Role for Good Policy Environment?," MPRA Paper 95433, University Library of Munich, Germany, revised 2018.

    More about this item

    Keywords

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

    JEL classification:

    • C10 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - General
    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • K10 - Law and Economics - - Basic Areas of Law - - - General (Constitutional Law)
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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