IDEAS home Printed from https://ideas.repec.org/a/spr/jknowl/v15y2024i3d10.1007_s13132-023-01509-0.html
   My bibliography  Save this article

The Impact of Corruption, Government Effectiveness, FDI, and GFC on Economic Growth: New Evidence from Global Panel of 48 Middle-Income Countries

Author

Listed:
  • Chebli Mongi

    (University of Tunis El Manar)

  • Kais Saidi

    (University of Sfax)

Abstract

This paper examines the interrelationships between corruption, public governance, gross fixed capital formation (GFCF), trade openness (TO), foreign direct investment (FDI), and economic growth (GDP) for a global panel of 48 middle-income countries over the period 1996–2019. A multivariate panel model was employed to evaluate the long-run relationship, and the panel Granger causality tests was used to assess the causality direction among different variables. The obtained results reveal that FDI and GFCF positively and corruption negatively affect economic growth. The empirical results from the Granger causality test reveal a bidirectional causality relationship between the FDI, GFCF, TO, and GDP in presence of political factors and corruption. Moreover, our empirical findings confirm the existence of unidirectional causality running from GDP, FDI, and GFCF to corruption, from government effectiveness to FDI and GFCF. The policy implications of these results are also proposed and discussed.

Suggested Citation

  • Chebli Mongi & Kais Saidi, 2024. "The Impact of Corruption, Government Effectiveness, FDI, and GFC on Economic Growth: New Evidence from Global Panel of 48 Middle-Income Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(3), pages 10696-10721, September.
    • Handle: RePEc:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01509-0
    DOI: 10.1007/s13132-023-01509-0
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s13132-023-01509-0
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s13132-023-01509-0?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    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:spr:jknowl:v:15:y:2024:i:3:d:10.1007_s13132-023-01509-0. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.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.