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Corruption and Geography: Case of Mena Regions

In: Country Experiences in Economic Development, Management and Entrepreneurship

Author

Listed:
  • Dorsaf Elbir

    (University of Carthage)

  • Mohamed Goaied

    (University of Carthage)

Abstract

In this work we have achieved an empirical estimation for the growth experiences in MENA regions, from 1990 to 2010, by measuring the spatial effects that is related to corruption and geography. We use the institution quality index corruption control (CORR) to measure the absolute location effect owing to country specific institution. We use the latitude of country’s centroid to measure the absolute location effect owing to geography (GEO). The spatial diagnostics indicates that there is a spatial autocorrelation. The obtained results indicate that we have to use the spatial error model rather than the spatial lag model. These effects have been modeled by using spatial error model and by using a spatial weight matrix. In this framework, the corruption control is strongly and positively related to the economic growth rate than the geography. The control of corruption has a dominant role than geographical factor to determine the growth in MENA region. The obtained result confirms the primacy of institutions over geography.

Suggested Citation

  • Dorsaf Elbir & Mohamed Goaied, 2017. "Corruption and Geography: Case of Mena Regions," Eurasian Studies in Business and Economics, in: Mehmet Huseyin Bilgin & Hakan Danis & Ender Demir & Ugur Can (ed.), Country Experiences in Economic Development, Management and Entrepreneurship, pages 239-249, Springer.
    • Handle: RePEc:spr:eurchp:978-3-319-46319-3_14
    DOI: 10.1007/978-3-319-46319-3_14
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