IDEAS home Printed from https://ideas.repec.org/a/pkp/teafle/v7y2020i2p162-178id1647.html
   My bibliography  Save this article

Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test

Author

Listed:
  • Antwi Stephen Kwadwo
  • Kong Yusheng
  • Mohammed Musah
  • Donkor Mary
  • Kasim Hamza

Abstract

This paper seeks to ascertain the relationship between corruption and economic growth in Ghana using time-series secondary data for the period 1984–2016. We employ auto-regressive distributed lags (ARDL) model to estimate the long-term relationship between corruption and economic growth in Ghana. Corruption is estimated to have a significant negative effect on per capita growth both in the short-term and long-term. While trade openness shows a positive effect on growth, inflation and capital formation show a significant negative influence on growth. We find the variables to be cointegrated and both the long-run and short-run parameters provide evidence of a negative relationship between corruption and economic growth. While capital formation and inflation also show negative effect on growth, trade openness shows a positive effect. The government should endeavour to effectively combat the destructive phenomena of corrupt practices that weaken the institutional quality through the adoption of functional regulatory measures. Transparency of governmental functions should be enhanced through the active involvement of citizens in governance as well as minimizing the discretion at the disposal of bureaucrats.

Suggested Citation

  • Antwi Stephen Kwadwo & Kong Yusheng & Mohammed Musah & Donkor Mary & Kasim Hamza, 2020. "Does Corruption Grease or Sand the Wheels of Economic Growth in Ghana? An ARDL Bounds Test," The Economics and Finance Letters, Conscientia Beam, vol. 7(2), pages 162-178.
  • Handle: RePEc:pkp:teafle:v:7:y:2020:i:2:p:162-178:id:1647
    as

    Download full text from publisher

    File URL: https://archive.conscientiabeam.com/index.php/29/article/view/1647/2298
    Download Restriction: no

    File URL: https://archive.conscientiabeam.com/index.php/29/article/view/1647/4874
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dramane Abdoulaye, 2022. "Corruption, property rights and economic growth in Africa: empirical evidence from natural resource rich countries," Economics Bulletin, AccessEcon, vol. 42(4), pages 2117-2134.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pkp:teafle:v:7:y:2020:i:2:p:162-178:id:1647. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dim Michael (email available below). General contact details of provider: https://archive.conscientiabeam.com/index.php/29/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.