IDEAS home Printed from
   My bibliography  Save this article

Corruption and economic growth in some selected transitional economies


  • Hakeem Ishola Mobolaji
  • Kamil Omoteso


Purpose - The general objective of the paper is to investigate the impact of corruption and other institutional factors on economic growth in some selected transitional economies for the period of 1990-2004 and make policy recommendations for combating it. Specifically, the study attempts to: assess whether corruption has any impact on the growth of the sample countries; examine whether simultaneous policy reform focussing on accountability and rule of law impact positively on growth of these economies; and investigate whether corruption in these countries exhibit the efficient grease syndrome. Design/methodology/approach - The indices for corruption and other institutional variables were drawn from International Country Risk Guide (ICRG – PRS) for the period of 1990-2004, the polity data were obtained from the Polity IV, while the real gross domestic product (GDP) per capita growth were obtained from the Penn World 6.2. The study covered the period between 1990 and 2004 that coincides with the real transition of these economies from centrally planned to market economies. It adopts the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analysis. Findings - The study's findings support Mauro's hypothesis that corruption has a negative impact on the economies. However, the study cannot find a robust statistical evidence to support the efficient grease hypothesis of Leff and Huntington. Research limitations/implications - The paper recommends policy efforts that would strengthen accountability and bureaucratic quality, reduce discretionary power, ethnic fractionalisation and military involvement in politics with a view to enhancing social responsibility practices at both micro and macro levels. Originality/value - Unlike previous studies that focussed on single cross-country regression with an assumption of identical aggregate production function for all countries, this study adopts the panel data framework that makes it possible to allow for differences in the form of unobservable individual country effects. The paper employs the fixed effect, the random effect and the maximum likelihood estimation techniques.

Suggested Citation

  • Hakeem Ishola Mobolaji & Kamil Omoteso, 2009. "Corruption and economic growth in some selected transitional economies," Social Responsibility Journal, Emerald Group Publishing, vol. 5(1), pages 70-82, March.
  • Handle: RePEc:eme:srjpps:v:5:y:2009:i:1:p:70-82

    Download full text from publisher

    File URL:
    Download Restriction: Access to full text is restricted to subscribers

    As the access to this document is restricted, you may want to search for a different version of it.


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

    Cited by:

    1. Huang, Chiung-Ju, 2016. "Is corruption bad for economic growth? Evidence from Asia-Pacific countries," The North American Journal of Economics and Finance, Elsevier, vol. 35(C), pages 247-256.


    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:eme:srjpps:v:5:y:2009:i:1:p:70-82. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Louise Lister). General contact details of provider: .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.