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Lucas Paradox, Institutional Quality and Corruption: Evidence from D.R. Congo

MULOWAYI, Francis K. and PINSHI, Christian P. (2023): Lucas Paradox, Institutional Quality and Corruption: Evidence from D.R. Congo.

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Abstract

This paper aims to examine the Lucas paradox in the DRC, and more specifically to test whether institutional quality could be a key variable for the resolution of the paradox in the DRC. Using Granger’s dynamic causality analysis and Toda-Yamamoto’s in-depth analysis, we find that the Lucas paradox is true in the DRC, and that institutional quality, including corruption or macroeconomic management, are far from resolving this paradox in the DRC.

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