IDEAS home Printed from https://ideas.repec.org/a/eco/journ1/2019-01-8.html
   My bibliography  Save this article

Corruption and Democracy in Middle East and North Africa Countries: Dynamic Generalized Method of Moments

Author

Listed:
  • Mohammed Lazreg

    (Department of Economics and Management, Sidi Bel Abbes University, Algeria)

  • Kamel Si Mohammed

    (Department of Economics and Management, Ain Temouchent University, Algeria.)

Abstract

The goal of this study is to investigate the relationship between democracy and corruption using a Dynamic Generalized Method of Moments (DGMM) during the period 1984-2013 in 13 MENA countries namely Algeria, Bahrain, Egypt, Iraq, Iran, Kuwait, Lebanon, Morocco, Qatar, Saudi Arabia, Tunisia, Turkey and United Arab Emirates. Our results captured the GDP per capita is feed corruption in MENA countries, while one percent of per capita GDP rise corruption about 0.73 and lead to lose more than 0.23 in MENA net oil and gas exporting countries except United Arab Emirates (Omgba (2015); Haber and Menaldo (2011)). In this context, magnitude of impacts in countries non-oil producers is less dependent with corruption over the last decade compared the two early decades and compares an oil and gas exporting countries. Thus, the high income states of the oil exporting countries would not have been decreased corruption level (Jetter (2015), Rachdi and Saidi (2014)). Finally, our finding present a positive significantly associated between democracy and corruption, the influence of positive feedback around about 0.5 points in regressors. According to this estimation, the lower democratization process in MENA countries highly depends to high levels of corruption

Suggested Citation

  • Mohammed Lazreg & Kamel Si Mohammed, 2019. "Corruption and Democracy in Middle East and North Africa Countries: Dynamic Generalized Method of Moments," International Journal of Economics and Financial Issues, Econjournals, vol. 9(1), pages 60-65.
    • Handle: RePEc:eco:journ1:2019-01-8
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijefi/article/download/7239/pdf
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijefi/article/view/7239/pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Jetter, Michael & Agudelo, Alejandra Montoya & Hassan, Andrés Ramírez, 2015. "The Effect of Democracy on Corruption: Income is Key," World Development, Elsevier, vol. 74(C), pages 286-304.
    2. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    3. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
    4. Levin, Mark & Satarov, Georgy, 2000. "Corruption and institutions in Russia," European Journal of Political Economy, Elsevier, vol. 16(1), pages 113-132, March.
    5. Rock, Michael T., 2009. "Has Democracy Slowed Growth in Asia?," World Development, Elsevier, vol. 37(5), pages 941-952, May.
    6. Helliwell, John F., 1994. "Empirical Linkages Between Democracy and Economic Growth," British Journal of Political Science, Cambridge University Press, vol. 24(2), pages 225-248, April.
    7. Billger, Sherrilyn M. & Goel, Rajeev K., 2009. "Do existing corruption levels matter in controlling corruption?: Cross-country quantile regression estimates," Journal of Development Economics, Elsevier, vol. 90(2), pages 299-305, November.
    8. Arvind K. Jain, 2001. "Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    9. Aisen, Ari & Veiga, Francisco José, 2013. "How does political instability affect economic growth?," European Journal of Political Economy, Elsevier, vol. 29(C), pages 151-167.
    10. Barro, Robert J. & Lee, Jong-Wha, 1993. "International comparisons of educational attainment," Journal of Monetary Economics, Elsevier, vol. 32(3), pages 363-394, December.
    11. Matthew A. Baum & David A. Lake, 2003. "The Political Economy of Growth: Democracy and Human Capital," American Journal of Political Science, John Wiley & Sons, vol. 47(2), pages 333-347, April.
    12. Danila Serra, 2006. "Empirical determinants of corruption: A sensitivity analysis," Public Choice, Springer, vol. 126(1), pages 225-256, January.
    13. Paolo Buonanno, 2006. "Crime and Labour Market Opportunities in Italy (1993–2002)," LABOUR, CEIS, vol. 20(4), pages 601-624, December.
    14. Ferree, Karen & Singh, Smita & Bates, Robert, 1997. "Political Institutions And Economic Growth In Africa," Harvard Institute for International Development (HIID) Papers 294403, Harvard University, Kennedy School of Government.
    15. Mohtadi, Hamid & Roe, Terry L., 2003. "Democracy, rent seeking, public spending and growth," Journal of Public Economics, Elsevier, vol. 87(3-4), pages 445-466, March.
    16. Iwasaki, Ichiro & Suzuki, Taku, 2012. "The determinants of corruption in transition economies," Economics Letters, Elsevier, vol. 114(1), pages 54-60.
    17. James H. Anderson & Cheryl W. Gray, 2006. "Anticorruption in Transition 3 : Who is Succeeding... and Why?," World Bank Publications - Books, The World Bank Group, number 7089.
    18. Pieroni, L. & d'Agostino, G., 2013. "Corruption and the effects of economic freedom," European Journal of Political Economy, Elsevier, vol. 29(C), pages 54-72.
    19. Midlarsky, Manus I., 1988. "Rulers and the Ruled: Patterned Inequality and the Onset of Mass Political Violence," American Political Science Review, Cambridge University Press, vol. 82(2), pages 491-509, June.
    20. Omgba, Luc Désiré, 2015. "Why Do Some Oil-Producing Countries Succeed in Democracy While Others Fail?," World Development, Elsevier, vol. 76(C), pages 180-189.
    21. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    22. Graf Lambsdorff, Johann, 2005. "Consequences and causes of corruption: What do we know from a cross-section of countries?," Passauer Diskussionspapiere, Volkswirtschaftliche Reihe V-34-05, University of Passau, Faculty of Business and Economics.
    23. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    24. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    25. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June.
    26. Haber, Stephen & Menaldo, Victor, 2011. "Do Natural Resources Fuel Authoritarianism? A Reappraisal of the Resource Curse," American Political Science Review, Cambridge University Press, vol. 105(1), pages 1-26, February.
    27. Kotera, Go & Okada, Keisuke & Samreth, Sovannroeun, 2012. "Government size, democracy, and corruption: An empirical investigation," Economic Modelling, Elsevier, vol. 29(6), pages 2340-2348.
    28. Carden Art & Verdon Lisa, 2010. "When Is Corruption a Substitute for Economic Freedom?," The Law and Development Review, De Gruyter, vol. 3(1), pages 40-63, May.
    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. Jetter, Michael & Parmeter, Christopher F., 2018. "Sorting through global corruption determinants: Institutions and education matter – Not culture," World Development, Elsevier, vol. 109(C), pages 279-294.
    2. 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.
    3. Michael Jetter & Christopher F. Parmeter, 2016. "Uncovering the determinants of corruption," Working Papers 2016-02, University of Miami, Department of Economics.
    4. Olmos, Lorena & Bellido, Héctor & Román-Aso, Juan A., 2020. "The effects of mega-events on perceived corruption," European Journal of Political Economy, Elsevier, vol. 61(C).
    5. Pieroni, L. & d'Agostino, G., 2013. "Corruption and the effects of economic freedom," European Journal of Political Economy, Elsevier, vol. 29(C), pages 54-72.
    6. Gabriel Caldas Montes & Paulo Henrique Luna, 2021. "Fiscal transparency, legal system and perception of the control on corruption: empirical evidence from panel data," Empirical Economics, Springer, vol. 60(4), pages 2005-2037, April.
    7. Kotera, Go & Okada, Keisuke & Samreth, Sovannroeun, 2012. "Government size, democracy, and corruption: An empirical investigation," Economic Modelling, Elsevier, vol. 29(6), pages 2340-2348.
    8. Blaise Gnimassoun, Joseph Keneck Massil, 2019. "Determinants of corruption: can we put all countries in the same basket?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 16(2), pages 239-276, December.
    9. Blaise Gnimassoun & Joseph Keneck Massil, 2016. "Determinants of corruption: Can we put all countries in the same basket?," Working Papers hal-04141599, HAL.
    10. Dutta, Nabamita & Roy, Sanjukta, 2016. "The interactive impact of press freedom and media reach on corruption," Economic Modelling, Elsevier, vol. 58(C), pages 227-236.
    11. Omar A. Guerrero & Gonzalo Castañeda, 2021. "Does expenditure in public governance guarantee less corruption? Non-linearities and complementarities of the rule of law," Economics of Governance, Springer, vol. 22(2), pages 139-164, June.
    12. Forson, Joseph Ato & Baah-Ennumh, Theresa Yabaa & Buracom, Ponlapat & Chen, Guojin & Peng, Zhen, 2014. "Causes of Corruption: Evidence from Sub-Sahara Africa," MPRA Paper 102431, University Library of Munich, Germany, revised 20 Mar 2016.
    13. Omar A. Guerrero & Gonzalo Casta~neda, 2019. "Does Better Governance Guarantee Less Corruption? Evidence of Loss in Effectiveness of the Rule of Law," Papers 1902.00428, arXiv.org.
    14. Nedra Baklouti & Younes Boujelbene, 2018. "Moderation of the Relationship Between Size of Government and Corruption by Democracy," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 9(4), pages 1210-1223, December.
    15. Héctor Bellido & Lorena Olmos & Juan A. Román-Aso, 2021. "The influence of government ideology on corruption: the impact of the Great Recession," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 677-708, July.
    16. Tran, My Thi Ha, 2021. "Public Sector Management And Corruption In Asean Plus Six," OSF Preprints stxw4, Center for Open Science.
    17. Jetter, Michael & Agudelo, Alejandra Montoya & Hassan, Andrés Ramírez, 2015. "The Effect of Democracy on Corruption: Income is Key," World Development, Elsevier, vol. 74(C), pages 286-304.
    18. Majeed, Muhammad Tariq & MacDonald, Ronald, 2010. "Corruption and the Military in Politics: Theory and Evidence from around the World," SIRE Discussion Papers 2010-91, Scottish Institute for Research in Economics (SIRE).
    19. repec:hhs:bofitp:2009_005 is not listed on IDEAS
    20. Dreher, Axel & Kotsogiannis, Christos & McCorriston, Steve, 2007. "Corruption around the world: Evidence from a structural model," Journal of Comparative Economics, Elsevier, vol. 35(3), pages 443-466, September.

    More about this item

    Keywords

    Corruption; Democracy; MENA Countries; Panel GMM;
    All these keywords.

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • C3 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables

    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:eco:journ1:2019-01-8. 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.