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

Listed author(s):
  • Simplice Asongu

    ()

    (Yaoundé/Cameroun)

  • Jacinta C. Nwachukwu

    ()

    (Coventry University)

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.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/A-Good-Turn-Deserves-Another.Political-stability-and-corruption.pdf
File Function: Revised version, 2015
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Paper provided by African Governance and Development Institute. in its series Working Papers with number 15/039.

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Length: 16
Date of creation: Sep 2015
Handle: RePEc:agd:wpaper:15/039
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