Asongu, Simplice and Nwachukwu, Jacinta (2015): A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control. Published in: Economics Bulletin , Vol. 35, No. 4 (October 2015): pp. 2037-2048.
Preview |
PDF
MPRA_paper_69446.pdf Download (325kB) | Preview |
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.
Item Type: | MPRA Paper |
---|---|
Original Title: | A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control |
Language: | English |
Keywords: | Fragility; Corruption; Conflicts; Africa |
Subjects: | F - International Economics > F5 - International Relations, National Security, and International Political Economy > F52 - National Security ; Economic Nationalism K - Law and Economics > K4 - Legal Procedure, the Legal System, and Illegal Behavior > K42 - Illegal Behavior and the Enforcement of Law O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O17 - Formal and Informal Sectors ; Shadow Economy ; Institutional Arrangements O - Economic Development, Innovation, Technological Change, and Growth > O5 - Economywide Country Studies > O55 - Africa P - Economic Systems > P1 - Capitalist Systems > P16 - Political Economy |
Item ID: | 69446 |
Depositing User: | Simplice Asongu |
Date Deposited: | 11 Feb 2016 08:20 |
Last Modified: | 28 Sep 2019 22:05 |
References: | Abe K., & Wilson, S., (2008). “Governance, Corruption, and Trade in the Asia Pacific Region”. World Bank Policy Research Working Paper. No. 4731. Ahlin C., & Pang, J., (2008). “Are Financial Development and Corruption Control Substitutes in Promoting Growth?”. Journal of Development Economics. 86(2), pp. 414-433. Aidt, T., (2009). “Corruption, Institutions, and Economic Development”. Oxford Review of Economic Policy. 25(2), pp. 271-291. Aidt, T., Dutta, J., & Sena, V., (2008). “Governance Regimes, Corruption and Growth: Theory and Evidence”. Journal of Comparative Economics. 36, pp. 195-220. Amavilah, V. H., (2015). “Social Obstacles to Technology, Technological Change, and the Economic Growth of African Countries: Some Anecdotal Evidence from Economic History”, MPRA Paper No. 63273. Arellano, M., & Bond, S. (1991) “Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations” The Review of Economic Studies 58, pp. 277-297. Arellano, M., & Bover, O. (1995) “Another look at the instrumental variable estimation of error-components models”, Journal of Econometrics 68, pp. 29-52. Asongu, S. A., (2012). “On the effect of foreign aid on corruption”, Economics Bulletin, 32(3), pp. 2174-2180. Asongu, S. A., (2013a). “Fighting corruption when existing corruption-control levels count: what do wealth-effects tell us in Africa?”, Institutions and Economies, 5(3), pp. 53-74. Asongu, S. A., (2013b). “Fighting corruption in Africa: do existing corruption control-levels matter?”, International Journal of Development Issues, 12(1), pp. 36-52. Asongu, S. A., (2013c). “On the effectiveness of foreign aid in institutional quality”, European Econnomic Letters, 2(1), pp. 12-19. Asongu, S. A., (2013d). “Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa”, Journal of Business Ethics, 118(1), pp. 45-60. Asongu, S. A., (2014a). “On the substitution of institutions and finance in investment”, Economics Bulletin, 34(3), pp. 1557-1574. Asongu, S. A., (2014b). “Globalization, (fighting) corruption and development: how are these phenomena linearly and nonlinearly related in wealth-effects?”, Journal of Economic Studies, 41(3), pp. 346-369. Asongu, S. A., (2014c). “Financial development dynamic thresholds of financial globalisation: evidence from Africa”, Journal of Economics Studies, 41(2), pp. 166-195. Asongu, S. A., Efobi, U., & Beecroft, I., (2015). “FDI, Aid, Terrorism: Conditional Threshold Evidence from Developing Countries”, African Governance and Development Institute Working Paper No. 15/019, Yaoundé. Asongu, S. A., & Kodila-Tedika, O., (2013). “Crimes and Conflicts in Africa: Consequences of Corruption”, European Economics Letters, 2(2), pp. 50-55. Asongu, S. A., & Kodila-Tedika, O., (2015). “Is Poverty in the African DNA(Gene)?”, African Governance and Development Institute Working Paper No. 15/011, Yaoundé. Asongu, S. A., & Kodila-Tedika, O., (2016). “Fighting African Conflicts and Crimes: Which Governance Tools Matter?”, International Journal of Social Economics: Forthcoming. Asongu, S. A., & Jellal, M., (2013). “On the channels of foreign aid to corruption”, Economics Bulletin, 33(3), pp. 2191-2201. Asongu, A. A., & Nwachukwu, J., (2015). “Revolution Empirics: Predicting the Arab Spring”, Empirical Economics: Forthcoming. Aysan, F., Nabli, K., & Veganzones-Varoudakis, A., (2007). “Governance institutions and private investment: An application to the MENA”. Developing Economies. 45(3), pp. 339- 377. Azfar, O., (2005). “Corruption et criminalité, in: Transparency International, Rapport mondial sur la corruptio”, Economica, Paris, pp. 358-361. Azfar, O., & Gurgur, T., (2004). “Crime, Crime reporting and Governance”, mimeo, IRIS University of Maryland, College Park. Baliamoune-Lutz, M., and Ndikumana, L. (2008), “Corruption and Growth: Exploring the Investment Channel”, University of Massachusetts, Amherst. Barbier, B., (2010). “Corruption and the Political Economy of Resource-Based Development: A Comparison of Asia and Sub-Saharan Africa”. Environmental & Resource Economics. 46(4), pp. 511-537. Blackburn, K., Neanidis Kyriakos, C., & Haque, E., (2008). “Corruption, Seigniorage and Growth: Theory and Evidence”. CESinfo Working Paper No. 2354. Blundell, R., & Bond, S., (1998). “Initial conditions and moment restrictions in dynamic panel data models” Journal of Econometrics, 87(1), pp. 115-143. Bond, S., Hoeffler, A., & Tample, J. (2001) “GMM Estimation of Empirical Growth Models”, University of Oxford. Brunetti, A., Kisunko, G., & Weder, B., (1998). “Credibility of Rules and Economic Growth: Evidence from a World Wide Private Sector Survey”. The World Bank Economic Review. 12(3), pp. 353-384. De la Croix D., & Delavallade C., (2007). “Corruption et allocation optimale de l'investissement public”. Revue économique. 58(3), pp. 637-647. De Rosa, D., Gooroochurn, N., & Görg, H., (2010). “Corruption and Productivity. Firm-level Evidence from the BEEPS Survey”. Policy Research Working Paper No. 5348. Delavallade, C., (2006). “Corruption and Distribution of public spending in Developing Countries”. Journal of Economics and Finance. 30(2), pp. 222-239. Dincer, C., & Gunalp, B., (2008). “Corruption, Income Inequality, and Poverty in the United States”. Working Papers No. 54. Fondazione Eni Enrico Mattei. Dreher A., & Herzfeld, T., (2005). “The Economic Costs of Corruption: A Survey and New Evidence”. Mimeo. Dzhumashev, R., (2009). “Is there a direct Effect of Corruption on Growth?”, MPRA Paper No. 18489. Everhart, S., Martinez-Vazquez, J., & McNab, M., (2009). “Corruption, Governance, Investment and Growth in Emerging Markets”. Applied Economics. 41(13), pp. 1579-1594. Friedman, E., Johnson, S., Kaufmann, D., & Zoido-Lobaton, P., (2000). “Dodging the Grabbing Hand: The Determinants of Unofficial Activity in 69 Countries”. Journal of Public Economics. 76, pp. 459-493. Ghura, D., (1998). “Tax Revenue in Sub-Saharan Africa - Effects of Economic Policies and Corruption”. IMF Working Papers No. 98/135. Gupta, S., Davoodi, H., & Alonso-Terme, R., (2002). “Does Corruption Affect Income Inequality and Poverty?”. Economics of Governance. 3, pp. 23-45. Gupta, S., de Mello, L., & Sharan, R., (2001). “Corruption and Military Spending”. European Journal of Political Economy. 17(4), pp. 749-777. Gyimah-Brempong, K., (2002). “Corruption, Economic Growth and Income Inequality in Africa”. Economics of Governance. 3, pp. 183-209. Gyimah-Brempong, K., De Camacho, & Samaria, M., (2006). “Corruption, Growth, and Income Distribution: Are there Regional Differences?”. Economics of Governance. 7(3), pp. 245-269. Haque, M., & Kneller, R., (2008). “Public Investment and Growth: The Role of Corruption”. Centre for Growth & Business Cycle Research Discussion Paper Series No 098. Houston, H., (2007). “Can Corruption Ever Improve An Economy?” Cato Journal. 27(3), pp. 325-342. Kodila-Tekida, O., (2012a). “Empirical survey on the causes of corruption”. MPRA Paper, No. 41484. Kodila-Tekida, O., (2012b). “Consequences of corruption: empirical survey”. MPRA Paper No. 41482. Kodila-Tedika, O., & Bolito-Losembe, R., (2014). “Corruption et Etats fragile africains”, African Development Review, 26(1), pp. 50-58. Li, H., Xu, C., & Zou, H.-F., (2000). “Corruption, Income Distribution and Growth”. Economics and Politics. 12(2), pp. 155-182. Mauro, P., (1995). “Corruption and growth”. The Quarterly Journal of Economics. 110(3), pp. 681-712. Mauro, P., (1997). The Effects of Corruption on Growth, Investment, and Government Expenditure: A Cross–Country Analysis”, in: Elliot, Corruption and the Global Economy, (Washington D.C.: Institute for International Economics), pp. 83-107. Méon, P. G., & Weill, L., (2010). “Is Corruption an Efficient Grease?” World Development. 38(3), pp. 244-259. Mlachila, M., Tapsoba, R., & Tapsoba, S. J. A., (2014). “A Quality of Growth Index for Developing Countries: A Proposal”, IMF Working Paper No. 14/172, Washington. Mo, H., 2001. “Corruption and Economic Growth”. Journal of Comparative Economics. 29, pp. 66-79. Mokaddem, L., (2010). “La corruption compromet la réalisation de l’éducation pour tous?: les canaux de transmission”. Presented at the European Seminar, Study Visit 11 mars 2010. Pellegrini, L., & Gerlagh, R., (2004). “Corruption’s Effect on Growth and its Transmission Channels”. Kylos. 57, pp. 429-456. Smith, J., Muir, J., Walpole, J., Balmford, A., & Leader-Williams, N., (2003). “Governance and the Loss of Biodiversity”. Nature. 426, pp. 67-70. Tanzi, V., & Davoodi, H., (1997). “Corruption, Public Investment and Growth”. IMF Working Paper, No. 97/139. Ugur, M., & Dasgupta, N., (2011). “Corruption and Economic Growth: A Meta-analysis of the Evidence on Low-Income Countries and Beyond”. MPRA Paper No. 31226. Wei, S.-J., (2000a). “Natural Openness and Good Government”. World Bank Policy Research Working Paper No. 2411. Wei, S.-J., (2000b). “Corruption, Composition of Capital Flows, and Currency Crises”. World Bank Working Paper No. 2429. Wei, S.-J., & Wu, Y., (2001). “Negative Alchemy? Corruption, Composition of Capital Flows, and Currency Crises”. NBER Working Paper No. 8187. Welsch, H., (2004). “Corruption, Growth and the Environment: A Cross-Country Analysis”. Environment and Development Economics. 9, pp. 663-693. You, J.-S., & Khagram, S., (2005). “Inequality and Corruption”. American Sociological Review. 70(1), pp. 136-157. |
URI: | https://mpra.ub.uni-muenchen.de/id/eprint/69446 |