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Corruption and Economic Development: New Evidence from the Middle Eastern and North African Countries

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  • Saha, Shrabani
  • Ben Ali, Mohamed Sami

Abstract

This paper analyses the role of economic development in curbing corruption by focusing on political and economic freedoms for a sample of Middle Eastern and North African (MENA) countries over the period 1984–2013. In addition, the analysis investigates whether political and economic freedoms lower corruption in natural-resource-rich countries by considering both linear and non-linear effects. The results reveal that the interactive relationship between economic and political freedoms and government size leads to a reduction in corruption. Furthermore, our results show robust support to suggest that an increase in income increases corruption in natural-resource-rich countries. Overall, our findings provide some relevant policy implications for MENA countries.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:ecanpo:v:54:y:2017:i:c:p:83-95
    DOI: 10.1016/j.eap.2017.02.001
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    More about this item

    Keywords

    Corruption; Economic development; Democracy; Economic freedom; MENA countries;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • E3 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • P44 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - National Income, Product, and Expenditure; Money; Inflation

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