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The Impact of Corruption on Economic Growth: A Comparative Analysis between Europe and MENA Countries

The Impact of Corruption on Economic Growth: A Comparative Analysis between Europe and MENA Countries

Noha A. Farrag, Asmaa M. Ezzat
Copyright: © 2020 |Pages: 25
ISBN13: 9781799812074|ISBN10: 1799812073|EISBN13: 9781799812081
DOI: 10.4018/978-1-7998-1207-4.ch015
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MLA

Farrag, Noha A., and Asmaa M. Ezzat. "The Impact of Corruption on Economic Growth: A Comparative Analysis between Europe and MENA Countries." Wealth Creation and Poverty Reduction: Breakthroughs in Research and Practice, edited by Information Resources Management Association, IGI Global, 2020, pp. 266-290. https://doi.org/10.4018/978-1-7998-1207-4.ch015

APA

Farrag, N. A. & Ezzat, A. M. (2020). The Impact of Corruption on Economic Growth: A Comparative Analysis between Europe and MENA Countries. In I. Management Association (Ed.), Wealth Creation and Poverty Reduction: Breakthroughs in Research and Practice (pp. 266-290). IGI Global. https://doi.org/10.4018/978-1-7998-1207-4.ch015

Chicago

Farrag, Noha A., and Asmaa M. Ezzat. "The Impact of Corruption on Economic Growth: A Comparative Analysis between Europe and MENA Countries." In Wealth Creation and Poverty Reduction: Breakthroughs in Research and Practice, edited by Information Resources Management Association, 266-290. Hershey, PA: IGI Global, 2020. https://doi.org/10.4018/978-1-7998-1207-4.ch015

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Abstract

Even though corruption is correlated to political and moral degradation, there is no consensus on the impact of corruption on economic growth. Although, theory leans to the view that corruption has negative impact on growth, still empirical evidence and counter arguments show that there might be positive implications for corruption. This paper compares the corruption impact on growth in 17 developed European countries vs. 15 developing MENA countries using a pooled OLS model and a random effects model for the period (1999-2012). This paper contributes to the literature by examining the impact of corruption on growth in scarcely examined countries in Europe and MENA. Also, the paper findings are intriguing because they show that the region, as a proxy to degree of development, significantly influences the effect of corruption on economic growth.

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