Impact of Government Corruption and Economic Growth in Sub-Saharan Countries
DOI:
https://doi.org/10.15678/AOC.2024.2605Keywords:
sub-Saharan African countries, panel data, corruption, government effectivenessAbstract
Objective: This research aims to investigate the effectiveness of government in sustainable economic growth and its impact on the control of corruption in selected sub-Saharan African (SSA) countries between 2002 and 2017.
Research Design & Methods: In this study, the independent variables included in the model, Control of Corruption (CONC), Government Effectiveness (GEFF) and Rule of Law (RLAW), were investigated using panel data analysis to investigate their possible effects on the Annual GDP Growth Rate as the dependent variable. Data obtained from selected SSA countries were used in the model to analyse possible relationships between these variables in the specified period.
Findings: The findings show that controlling corruption is not statistically significant but negatively affects economic growth in SSA countries. Conversely, the rule of law is statistically significant and negatively impacts these countries.
Implications/Recommendations: The results highlighted the necessity of strengthening the institutional structures and controls to increase the positive effects of government effectiveness and corruption control on economic growth in SSA countries. Similarly, in line with the results obtained from this study, governments in the region are recommended to prioritise strengthening their institutional structures to promote economic development.
Contribution: This study draws attention to the critical role of a properly functioning legal system and the rule of law in SSA countries, as well as to economic growth, and contributes to the existing literature in this context. In addition, the detrimental effects of weak institutional structures on the relationship between the control of corruption and economic performance in the region are also highlighted. Ultimately, the research highlights the need for joint initiatives and efforts to address governance challenges and promote sustainable economic development in SSA countries.
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