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A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control

Author

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  • Simplice Asongu

    () (Yaoundé/Cameroun)

  • Jacinta C. Nwachukwu

    () (Coventry University)

Abstract

We build on existing literature and contemporary challenges to African development to assess the role of political stability in fighting corruption and boosting corruption-control in 53 African countries for the period 1996-2010. We postulate that on the one hand, an atmosphere of political instability should increase the confidence of impunity owing to less corruption-control. On the other hand, in the absence such impunity from corruption, political instability further fuels corruption. Our findings validate both hypotheses. Hence, contrary to a stream of the literature, we establish causal evidence of a positive (negative) nexus between political stability/no violence and corruption-control (corruption). The empirical evidence is based on Generalized Methods of Moments. The findings are robust to contemporary and non-contemporary quantile regressions. The political stability estimates are consistently significant with decreasing (increasing) magnitudes throughout the conditional distributions of corruption (corruption-control). In other words, the positive responsiveness of corruption-control to political stability is an increasing function of corruption-control while the negative responsiveness of corruption to political stability is a decreasing function of corruption. Simply put: a good turn deserves another.

Suggested Citation

  • Simplice Asongu & Jacinta C. Nwachukwu, 2015. "A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control," Working Papers 15/039, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:15/039
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    Cited by:

    1. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers 15/040, African Governance and Development Institute..
    2. Asongu, Simplice A., 2017. "Assessing marginal, threshold, and net effects of financial globalisation on financial development in Africa," Journal of Multinational Financial Management, Elsevier, vol. 40(C), pages 103-114.
    3. Oasis Kodila-Tedika & Martin Mulunda Kabange, 2016. "Slave trade and Human Trafficking," Working Papers 16/002, African Governance and Development Institute..

    More about this item

    Keywords

    Fragility; Corruption; Conflicts; Africa;

    JEL classification:

    • F52 - International Economics - - International Relations, National Security, and International Political Economy - - - National Security; Economic Nationalism
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P16 - Economic Systems - - Capitalist Systems - - - Political Economy of Capitalism

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