Kamil Omoteso and Hakeem Ishola Mobolaji
This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a…
Abstract
Purpose
This study aims to investigate the impact of governance indices (especially control of corruption) on economic growth in some selected Sub-Sahara African (SSA) countries with a view to making policy recommendations. Specifically, the study attempts to assess whether either governance reforms (especially those relating to control of corruption) or simultaneous policy reforms could have any impact on the growth of the sample SSA countries.
Design/methodology/approach
The governance indicators used in this study were drawn from the PRS Group and the Worldwide Governance Indicators for 2002-2009, while the real gross domestic product (GDP) per capita growth data were obtained from the World Bank database. The study covered 47 SSA countries, and it adopted the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analyses.
Findings
The study found that political stability and regulatory quality indicators have growth-enhancing features, as they impact on economic growth in the region significantly, while government effectiveness impacts negatively on economic growth in the region. Despite, several anti-corruption policies in the region, the impact of corruption control on economic growth is not very obvious. The study also found that simultaneous implementation of the voice and accountability and the rule of law indicators has more positive impact on economic growth in the region. Both policies are complementary, and, hence, can be pursued simultaneously.
Research limitations/implications
The results suggest that reform efforts that aim at enhancing accountability, regulatory quality, political stability and the rule of law have more growth-enhancing features and, thus, should be given more priority over reform efforts that singly address the issue of control of corruption due to the endemic, systemic and ubiquitous nature of corruption in the region.
Practical implications
The study suggests that reform efforts that aim at enhancing accountability, regulatory quality and rule of law have more growth-enhancing features and, therefore, should be given more priority.
Originality/value
Many previous studies attempted to examine the impact of corruption on economies, but this paper tries to assess the effect of corruption control and other governance indices on economic growth in the most vulnerable region of the world, the SSA. Besides, the study adopts the panel data framework which makes it possible to allow for differences in the form of unobservable individual country effects.
Details
Keywords
The purpose of this paper is to analyse the role of expectation in fighting corruption in a society.
Abstract
Purpose
The purpose of this paper is to analyse the role of expectation in fighting corruption in a society.
Design/methodology/approach
The methodology is analytical in nature, drawing evidence from the Quran, Hadith and Seerah. It has a strong theoretical basis on the role of expectation in eliciting desirable response.
Findings
The paper suggests that a continuous disregard to corruption‐reducing impact of the revealed ethics would always lead to a suboptimal anti‐corruption policy and exacerbate a drifting pressure to locally stable corruption equilibrium.
Research limitations/implications
The paper focuses on the role of expectation at micro level, a macroeconomic perspective can be a good research effort. Also, due to the paucity of data as a result of the nature of the topic being investigated, new research can further investigate this issue empirically.
Practical implications
Potential outcome of this paper is to stem the wave of corruption through revealed ethics or God consciousness which is relatively easier to administer and less costly, since reform effort is internally supported not externally imposed.
Social implications
This paper would positively impact on the society, by stemming the upsurge of corruption through religious ethics. It further allocates a greater role to the society in curbing corruption through the revealed ethics. This paper would positively influence public attitudes towards corruption, hence improve the quality of.
Originality/value
The paper is novel, in that it applies an economic theory to solving a social menace. It further optimally combines both conventional economic theory with revealed religious teachings and argues that both may not conflict if properly understood or properly applied. The paper is a necessary bridge between Western perspective and Islamic Position, more importantly now that the world is looking for a viable alternative to the inadequacies of the conventional Western perspectives.
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Keywords
Hakeem Ishola Mobolaji and Kamil Omoteso
The general objective of the paper is to investigate the impact of corruption and other institutional factors on economic growth in some selected transitional economies for the…
Abstract
Purpose
The general objective of the paper is to investigate the impact of corruption and other institutional factors on economic growth in some selected transitional economies for the period of 1990‐2004 and make policy recommendations for combating it. Specifically, the study attempts to: assess whether corruption has any impact on the growth of the sample countries; examine whether simultaneous policy reform focussing on accountability and rule of law impact positively on growth of these economies; and investigate whether corruption in these countries exhibit the efficient grease syndrome.
Design/methodology/approach
The indices for corruption and other institutional variables were drawn from International Country Risk Guide (ICRG – PRS) for the period of 1990‐2004, the polity data were obtained from the Polity IV, while the real gross domestic product (GDP) per capita growth were obtained from the Penn World 6.2. The study covered the period between 1990 and 2004 that coincides with the real transition of these economies from centrally planned to market economies. It adopts the panel data framework, the fixed effect, the random effect and the maximum likelihood estimation techniques for the analysis.
Findings
The study's findings support Mauro's hypothesis that corruption has a negative impact on the economies. However, the study cannot find a robust statistical evidence to support the efficient grease hypothesis of Leff and Huntington.
Research limitations/implications
The paper recommends policy efforts that would strengthen accountability and bureaucratic quality, reduce discretionary power, ethnic fractionalisation and military involvement in politics with a view to enhancing social responsibility practices at both micro and macro levels.
Originality/value
Unlike previous studies that focussed on single cross‐country regression with an assumption of identical aggregate production function for all countries, this study adopts the panel data framework that makes it possible to allow for differences in the form of unobservable individual country effects. The paper employs the fixed effect, the random effect and the maximum likelihood estimation techniques.