publication . Article . 2015

Greasing or sanding the wheels? Effect of corruption on economic growth in sub- Saharan Africa

Ibrahim, Muazu; Kumi, Emmanuel; Yeboah, Thomas;
Restricted English
  • Published: 01 Jan 2015 Journal: volume 4, pages 157-173issn: 2046-4770, Copyright policy
Abstract
Corruption is a pervasive challenge confronting the world more especially countries in sub-Saharan Africa. This paper investigates the effect of corruption on economic growth in the subregion using data spanning 1998 to 2011. By employing the pooled estimated generalized least squares (EGLS) and two stage least squares (2SLS), we find that corruption is inimical to<br/>economic growth through its indirect effect on gross fixed capital formation and labour force. The results are not only robust to controlling for endogeneity using regional blocs of the countries as instruments in the 2SLS estimations but identifies government expenditure as additional pass-throug...
Subjects
free text keywords: Corruption, economic growth, sub-Saharan Africa, Grease the wheels, Sand the wheels
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