Contact Us

For Marketing, Sales and Subscriptions Inquiries
2637 E Atlantic Blvd #43110
Pompano Beach, FL 33062
USA

Conference List

Corruption’s and Democracy’s Effects on Economic Growth

Amira Zaouali

Amira Zaouali 1

  1. Faculty of Economic Sciences and Management of Tunis, University of Tunis El Manar 1

on Google Scholar
on PubMed

Abstract:

Economists have a long argue that political process such as democracy and corruption are important for economic growth. Our objective in this paper is to demonstrate that one of democracy’s indirect positive effects is its ability to mitigate the negative effect of corruption on economic growth. Although most democratic countries in our sample have a high level of corruption, the electoral mechanism inhibits leaders from engaging in acts of corruption that cause damage to economic performance and thus jeopardize their political survival. Utilizing a dynamic panel data approach for more than 40 countries over the period 2000- 2011, the results show that in democratic countries, corruption has no significant effect on economic growth, while the non-democratic countries suffer the negative effects of corruption that retard economic growth.
Contribution/ Originality

Keywords:


Reference:

  1. Barro, R., 1997. Determinants of economic growth: A cross-country empirical study. Cambridge, Mass: MIT Press.
  2. Bueno De Mesquita, B., J.D. Morrow, R. Siverson and A. Smith, 2001. Political competition and economic growth. Journal of Democracy, 12(1): 58-72.
  3. Clague, C., P. Keefer, S. Knack and M. Et Olson, 1996. Property and contract rights in autocracies and democracies. Journal of Economic Growth, 1(2): 243–276.
  4. Drury, C., J. Krieckhaus and M. Lusztig, 2006. Corruption, democracy, and economic growth. International Political Science Review, 27(2): 121–136.
  5. Helliwell, J.F., 1994. Empirical linkages between democracy and economic growth. British Journal of Political Science, 24(2): 225-248.
  6. Huntington, S.P., 1968. Political order in changing societies. New Haven, CT: Yale University Press.
  7. Huntington, S.P. and J.M. Nelson, 1976. No esy choice: Political participation in developing countries. Im, K.S., Hashem (Ed). Cambridge, MA: Harvard University Press.
  8. Isse, S.H. and M.A. Abdiweli, 2003. Determinants of economic corruption: A cross-country comparison. Cato Journal, 22(3): 449-466.
  9. Knack, S. and P. Keefer, 1995. Institutions and economic performance: Cross country tests using alternative institutional measures. Economics and Politics, 7(3): 207-227.
  10. Leff, N., 1964. Economic development through bureaucratic corruption. American Behavioral Scientist, 82: 337-341.
  11. Lipset, S.M., 1959. Some social requisites of democracy. American Political Science Review, 53(1): 69–105.
  12. Lui, F.T., 1985. An equilibrium queuing model of bribery. Journal of Political Economy, 93(4): 760–781.
  13. Mauro, P., 1995. Corruption and growth. Quarterly Journal of Economics, 110(3): 681-712.
  14. Mo, P., 2001. Corruption and economic growth. Journal of Comparative Economics, 29: 66–79.
  15. North, D., 1990. Institutions, institutional change, and economic performance. Cambridge: Cambridge University Press.
  16. Rodrik, D., 1999. Where did all the growth go? External shocks, social conflict and growth collapses. Journal of Economic Growth, 4(4): 385–412.
  17. Rodrik, D., 2002. Institutions for high-quality growth: What they are and how to acquire them. NBER WP, No. 7540.
  18. Sirowy, L. and A. Inkeles, 1990. The effects of democracy on economic growth and inequality: A review. Studies in Comparative International Development, 25(1): 126-157.
  19. Transparency International, 2012. Available from www.transparency.org.
  20. Wedeman, A., 1997. Looters, rent-scrapers, and dividend-collectors: Corruption and growth in zaire. South Korea, and the Philippines. Journal of Developing Areas, 31(4): 457-478.
  21. World Development Indicators, 2012. Washington. Available from http://publications.worldbank.org/WDI/.

Statistics:

Google Scholor ideas Microsoft Academic Search bing Google Scholor

Funding:

Competing Interests:

Acknowledgement:


Related Article

( 1 ) Corruption’s and Democracy’s Effects on Economic Growth
( 3 ) The Effects of Exchange Rate Liberalization in Kenya on French Beans Exports
( 4 ) Does the Mena Countries May Converge in GDP to Southern European One? The Effects of International Trade
( 6 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 7 ) Effects of Advertising on Consumer Behavior in Low Density Houses: The Case of Marlborough, Zimbabwe
( 8 ) Moderating Effects of Project Management Experience, Project Team Size, Project Duration and Project Value Size on the Relationship between Project Manager’s Leadership Roles and Project Team Effectiveness in Malaysia
( 9 ) The Effects of Changes in Accounting Standards on Value Relevance of Financial Statement Information of Malaysia and Nigeria Banks
( 10 ) Organisational Politics – Causes and Effects on Organisation and Employees
( 11 ) Land Use/Land Cover Change and its Effects on Bamboo Forest in Benishangul Gumuz Region, Ethiopia
( 12 ) Effects of Environmental Satisfaction on Family Displacement Case Study: Gohar Dasht Region, Karaj City
( 13 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 14 ) The Effects of Exchange Rate Variability on Trade Flows in Nigeria: A Cointegration Analysis
( 15 ) Analysis of the Effects of Pull and Push Factors on Brain Drain: An Example of Turkey
( 16 ) Effects of Socio-Cultural Diversity on the Performance of Private Health Care Organizations in Kogi State
( 17 ) Consideration the Relationship Between Information Communications Technology and Economic Growth in Top 10 Economic
( 18 ) Shifting Global Economic Paradigm
( 19 ) How Telecommunication Development Aids Economic Growth: Evidence from Itu Ict Development Index (IDI) Top Five Countries for African Region
( 20 ) The Prospects of Accounting and Economic Systems in the Era of Global Knowledge Economy
( 21 ) Labor and Economic Growth in Zimbabwe
( 22 ) The Impact of Human Capital on Economic Growth: Evidence from Tunisia Using Star and Stecm Models
( 23 ) Exchange Rate Movements, Import And Economic Growth in Nigeria (1986-2010)
( 24 ) Impact of Food Beverage Price Index and Exchange Rate Volatility on Economic Growth
( 25 ) Long-Run Relationships and Causality Tests Between Military Expenditure and Economic Growth in India
( 26 ) Public Infrastructure Spending and Economic Growth in Nigeria: An Error Correction Mechanism (ECM) Approach
( 27 ) Study of the Relationship between Economic Growth and Inflation: Application to the Countries of the South Side of the Mediterranean: A Panel Data Approach
( 28 ) The Entrepreneurship, Knowledge Spillover and Economic Growth
( 30 ) Relationships between Financial Development and Economic Growth: A New Approach by Inputs
( 31 ) Impact of Microfinance Lending On Economic Growth of Third world Nations: Study of Nigeria
( 32 ) The Role of Information and Communication Technology in Rural Socio-Economic Development in Africa
( 33 ) Dividend Policy Relevancy in Theoretical and Practical Economics
( 35 ) Is Brics a Viable Solution for Russia in the Context of the Present Eu’s Economic Sanctions?
( 36 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 37 ) Rural Saving Mobilizations and Economic Development in Akamkpa Local Government Area of Cross River State - Nigeria
( 38 ) Nigerian Politics, Economic Development, and the Role of Human Rights Organisations on Elections
( 39 ) Rural - Urban Balance as a Measure of Socio-Economic Development with Special Reference to Iran
( 40 ) Causal Relationship between Imports and Economic Growth in Zimbabwe: An Empirical Analysis 1975 – 2013
( 41 ) The Effect of Access and Quality of Education on Economic Development in Botswana
( 42 ) Panel Data Analysis of the Impact of Economic Freedom as Well as Economic Conditions, The Quality of Life, and Public Education Spending on U.S. Undocumented Immigrant Settlement Patterns
( 43 ) Dynamics of Inflation, Economic Growth, Money Supply and Exchange Rate in India: Evidence from Multivariate Analysis
( 44 ) Structural Breaks, Electricity Generation and Economic Growth in Nigeria
( 45 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 46 ) The Link Between Agricultural Budgetary Allocation and Economic Growth in Nigeria
( 47 ) Financial Deepening, Interest Rate Spread and Economic Growth: New Evidence from Sub-Sahara Africa
( 48 ) China Pakistan Economic Corridor (CPEC): Analysis of Internal and External Challenges
( 49 ) A Case Study of Local Government Implementation of the Ward Based Local Economic Development (LED) Program
( 50 ) Military Regimes and Nigeria’s Economic Development, 1966-1999
( 51 ) An Investigation of the Relationship between Manufacturing Output and Economic Growth : Evidence from Nigerias Data Set
( 52 ) Scenario Economic Impact Analysis of Offshore Fishing Tournaments in Ocean City
( 53 ) Macroeconomic Indicators and Capital Formation Growth in Nigeria: A New Evidence
( 54 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 55 ) Disaggregated Foreign Capital Inflows and Economic Growth in a Developing Economy: Empirical Evidence from Nigeria
( 56 ) Impact of Telecommunications Market Liberalization on Labor Productivity in Economic Community of West African States
( 57 ) Assessment of Dual Carriageway for Sustainable Socio-Economic Development in Ado Ekiti, Nigeria
( 58 ) Industrialization and Economic Growth in Sub-Saharan Africa: The Role of Human Capital in Structural Transformation
( 59 ) Does Agricultural Sector Contribute to the Economic Growth in Case of Republic of Benin?
( 60 ) Uncertainties in Global Economic Policy and Nigerias Export Earnings
( 61 ) Public Health Expenditure, Economic Growth and Health Outcomes in Nigeria
( 62 ) External Debt and Economic Growth: Two-Step System GMM Evidence for Sub-Saharan Africa Countries
( 63 ) Impact of Exchange Rate Fluctuation on Selected Economic Sectors of the Nigerian Economy
( 64 ) The Colonialists & Indigenous Exchange Currency: Tracing the Genesis of Socioeconomic Woes in Postcolonial Nigeria
( 65 ) The Transitional Relationship between Economic Growth and Exchange Rate in Ghana: An Empirical Approach
( 66 ) Estimating the Economic Determinants of Technical Efficiency of Bioenergy in EU-28: An Application of Tobit Analysis
( 67 ) The Impact of Military Spending on Economic Wellbeing in Nigeria
( 68 ) The Relationship between Financial Development, Economic Growth, and Inflation: Evidence from Southeast Asia
( 69 ) German Exports, Economic Growth and Foreign Demand: An Analysis of the Period 2000–2017