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

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  • Asongu, Simplice
  • Nwachukwu, Jacinta

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.

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  • Asongu, Simplice & Nwachukwu, Jacinta, 2015. "A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control," MPRA Paper 69446, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:69446
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    Cited by:

    1. 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.
    2. Oasis Kodila-Tedika & Martin Mulunda Kabange, 2016. "Slave trade and Human Trafficking," Working Papers of the African Governance and Development Institute. 16/002, African Governance and Development Institute..
    3. Simplice Asongu & Lieven De Moor, 2015. "Financial globalisation and financial development in Africa: assessing marginal, threshold and net effects," Working Papers of the African Governance and Development Institute. 15/040, African Governance and Development Institute..

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    More about this item

    Keywords

    Fragility; Corruption; Conflicts; Africa;
    All these keywords.

    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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