IDEAS home Printed from https://ideas.repec.org/a/aic/revebs/y2018j22adjord.html
   My bibliography  Save this article

Does Corruption Matter For Unemployment In Sadc Countries?

Author

Listed:
  • DOPÉ M. ADJOR

    (Department of Economics, University of Lomé, Togo)

  • LÉLENG KEBALO

    (Department of Economics, University of Lomé, Togo)

Abstract

Is corruption, the main source of unemployment in the SADC countries? Do the effects of corruption outweigh those of income inequalities, human capital and government revenues in explaining the unemployment rate within the SADC area? Through these questions, the objective of our paper is to propose targeted policies that can enable decision-makers to reduce the unemployment rate within the SADC area. Through a panel vector autoregressive model, our empirical investigation on a sample of nine (09) SADC countries reveals that the education level and income inequalities contribute the most to explain the total unemployment rate. However, for the youth unemployment, corruption is the main factor followed by the level of education. To reduce total unemployment in the area, SADC countries need to reduce income inequalities and the mismatch between education and the labour market needs and/or countries’ development programs. For the youth unemployment, the reduction of corruption to all its forms should be the priority of political and economic decisionmakers.

Suggested Citation

  • Dop㉠M. Adjor & Lã‰Leng Kebalo, 2018. "Does Corruption Matter For Unemployment In Sadc Countries?," Review of Economic and Business Studies, Alexandru Ioan Cuza University, Faculty of Economics and Business Administration, issue 22, pages 65-92, December.
    • Handle: RePEc:aic:revebs:y:2018:j:22:adjord
    as

    Download full text from publisher

    File URL: http://rebs.feaa.uaic.ro/articles/pdfs/287.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Staff Papers, Palgrave Macmillan, vol. 45(4), pages 559-594, December.
    2. Saha, Shrabani & Ben Ali, Mohamed Sami, 2017. "Corruption and Economic Development: New Evidence from the Middle Eastern and North African Countries," Economic Analysis and Policy, Elsevier, vol. 54(C), pages 83-95.
    3. Bruno Contini, 2012. "Youth employment in Europe: do institutions and social capital explain better than mainstream economics?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 9(2), pages 247-277, August.
    4. Emine Boz & Linda Tesar, 2018. "Macroeconomics After the Great Recession, II," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 66(2), pages 223-225, June.
    5. Elhanan Helpman & Oleg Itskhoki & Stephen Redding, 2010. "Inequality and Unemployment in a Global Economy," Econometrica, Econometric Society, vol. 78(4), pages 1239-1283, July.
    6. Marco Battaglini & Stephen Coate, 2011. "Fiscal Policy and Unemployment," NBER Working Papers 17562, National Bureau of Economic Research, Inc.
    7. Jacob Mincer, 1991. "Education and Unemployment," NBER Working Papers 3838, National Bureau of Economic Research, Inc.
    8. Andrews, Donald W. K. & Lu, Biao, 2001. "Consistent model and moment selection procedures for GMM estimation with application to dynamic panel data models," Journal of Econometrics, Elsevier, vol. 101(1), pages 123-164, March.
    9. David N. F. Bell & David G. Blanchflower, 2011. "Young people and the Great Recession," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 27(2), pages 241-267.
    10. Nickell, Stephen, 1979. "Education and Lifetime Patterns of Unemployment," Journal of Political Economy, University of Chicago Press, vol. 87(5), pages 117-131, October.
    11. Olivier Blanchard & Florence Jaumotte & Prakash Loungani, 2014. "Labor market policies and IMF advice in advanced economies during the Great Recession," IZA Journal of Labor Policy, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 3(1), pages 1-23, December.
    12. Mauro, Paolo, 1998. "Corruption and the composition of government expenditure," Journal of Public Economics, Elsevier, vol. 69(2), pages 263-279, June.
    13. Hirotugu Akaike, 1969. "Fitting autoregressive models for prediction," Annals of the Institute of Statistical Mathematics, Springer;The Institute of Statistical Mathematics, vol. 21(1), pages 243-247, December.
    14. Shang-Jin Wei, 2000. "How Taxing is Corruption on International Investors?," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 1-11, February.
    15. Iulian CONDRATOV, 2014. "Determinants Of Youth Unemployment: A Survey Of The Literature," EcoForum, "Stefan cel Mare" University of Suceava, Romania, Faculty of Economics and Public Administration - Economy, Business Administration and Tourism Department., vol. 3(2), pages 1-16, July.
    16. Roberto Dell'Anno & Offiong Helen Solomon, 2008. "Shadow economy and unemployment rate in USA: is there a structural relationship? An empirical analysis," Applied Economics, Taylor & Francis Journals, vol. 40(19), pages 2537-2555.
    17. Elizabeth Asiedu & James Freeman, 2009. "The Effect of Corruption on Investment Growth: Evidence from Firms in Latin America, Sub‐Saharan Africa, and Transition Countries," Review of Development Economics, Wiley Blackwell, vol. 13(2), pages 200-214, May.
    18. Mr. Vito Tanzi, 1998. "Corruption Around the World: Causes, Consequences, Scope, and Cures," IMF Working Papers 1998/063, International Monetary Fund.
    19. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    20. Pontus Rendahl, 2016. "Fiscal Policy in an Unemployment Crisis," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 83(3), pages 1189-1224.
    21. Jacob Mincer, 1991. "Education and Unemployment of Women," NBER Working Papers 3837, National Bureau of Economic Research, Inc.
    22. Marco Battaglini & Stephen Coate, 2016. "A Political Economy Theory Of Fiscal Policy And Unemployment," Journal of the European Economic Association, European Economic Association, vol. 14(2), pages 303-337, April.
    23. Michael D. Hurd & Susann Rohwedder, 2010. "Effects of the Financial Crisis and Great Recession on American Households," NBER Working Papers 16407, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tran, My Thi Ha, 2021. "Public Sector Management And Corruption In Asean Plus Six," OSF Preprints stxw4, Center for Open Science.
    2. Krisztina Kis-Katos & Günther G. Schulze, 2013. "Corruption in Southeast Asia: a survey of recent research," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 27(1), pages 79-109, May.
    3. Arminen, Heli & Menegaki, Angeliki N., 2019. "Corruption, climate and the energy-environment-growth nexus," Energy Economics, Elsevier, vol. 80(C), pages 621-634.
    4. Toke S. Aidt, 2011. "Corruption and Sustainable Development," Chapters, in: Susan Rose-Ackerman & Tina Søreide (ed.), International Handbook on the Economics of Corruption, Volume Two, chapter 1, Edward Elgar Publishing.
    5. Bienvenido Ortega & Antonio Casquero & Jesús Sanjuán, 2016. "Corruption and Convergence in Human Development: Evidence from 69 Countries During 1990–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 691-719, June.
    6. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    7. Rana Ejaz Ali Khan & Hafiza Maria Naeem, 2020. "Corruption, Income Inequality and Human Resource Development in Developing Economies," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 8(4), pages 248-259, December.
    8. Cooray, Arusha & Dzhumashev, Ratbek & Schneider, Friedrich, 2017. "How Does Corruption Affect Public Debt? An Empirical Analysis," World Development, Elsevier, vol. 90(C), pages 115-127.
    9. Juan Camilo Galvis Ciro & Guillermo David Hincapié-Vélez, 2022. "Los efectos de la corrupción sobre el gasto público en los departamentos de Colombia," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(73), pages 227-262, February.
    10. Ahmed Sakr Ashour & Hoda Saad AboRemila, 2019. "A Conceptual Analysis of Macro Corruption: Dimensions and Forward and Backward Linkages," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(2), pages 277-299, December.
    11. Eva Kotlánová & Igor Kotlán, 2012. "Vliv institucionálního prostředí na velikost korupce: empirická analýza [The Influence of the Institutional Factors on the Corruption: The Empirical Analysis]," Politická ekonomie, Prague University of Economics and Business, vol. 2012(2), pages 167-186.
    12. Karokhi, Somaya & Rasa, Mohammad Mirwais, 2020. "Impact of Corruption on Foreign Direct Investment, Tax Revenues and Trade in Afghanistan: An Empirical Examination and Literature Review," MPRA Paper 122672, University Library of Munich, Germany, revised 08 Jun 2021.
    13. Lackó, Mária, 2006. "Az adóráták és a korrupció hatásai a munkapiacra. Keresztmetszeti összehasonlító elemzés az OECD-országokon [The effects of tax rates and corruption on the labour market. A cross-sectional comparat," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(11), pages 961-985.
    14. Tavares, José & Larrain B., Felipe, 2007. "Can Openness Deter Corruption? The Role of Foreign Direct Investment," CEPR Discussion Papers 6488, C.E.P.R. Discussion Papers.
    15. Singh, Bhanu Pratap & Kannadhasan, M., 2020. "Corruption and capital structure in emerging markets: A panel quantile regression approach," Journal of Behavioral and Experimental Finance, Elsevier, vol. 28(C).
    16. Mtiraoui, Abderraouf, 2015. "Corruption et développement économique: Application aux secteurs de l’éducation et de la santé dans la zone MENA [Corruption and Economic Development: Application to the sectors of education and he," MPRA Paper 64306, University Library of Munich, Germany.
    17. Osabiyi, Kolawole Emmanuel & Aiyegbusi Oluwole. Oladipo & OLOFIN, Olabode Philip, 2019. "Corruption, Institutional Quality and Economic Growth in West African Countries (1995-2017)," Journal of Public Administration and Governance, Macrothink Institute, vol. 9(2), pages 217-229, December.
    18. Sass, Peter & Pies, Ingo, 2005. "Selbstverpflichtung als Instrument der Korruptionsprävention bei Infrastrukturprojekten," Discussion Papers 2005-4, Martin Luther University of Halle-Wittenberg, Chair of Economic Ethics.

    More about this item

    Keywords

    unemployment; Corruption; Education; Income Inequality; youth; public policy.;
    All these keywords.

    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • J40 - Labor and Demographic Economics - - Particular Labor Markets - - - General
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy

    Statistics

    Access and download statistics

    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:aic:revebs:y:2018:j:22:adjord. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Sireteanu Napoleon-Alexandru (email available below). General contact details of provider: https://edirc.repec.org/data/feaicro.html .

    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.