The Impact of Corruption on Economic Performance in Sub-Saharan Africa

Abstract

The debate over how corruption affects economic growth and development has become more prominent recently and many studies have been conducted on this issue. However, different researchers have obtained mixed results regarding the impact of corruption on economic performance. Some scholarly articles suggest that corruption hinders development (called ‘Sanders’), while others argue that corruption can sometimes promote development (known as ‘greasers’). Moreover, different methods used to analyze the effect of corruption have produced mixed impressions. This research paper aims to address this gap in the existing literature by analyzing the effect of corruption on economic growth and development across a sample of 36 sub-Saharan countries and 6 North African countries from 2007 to 2021, and how this effect varies across the Sub-Saharan region. The study found that there is a positive correlation between corruption and economic growth and development. In other words, countries with higher scores on the Corruption Perception Index tend to experience better economic growth and development. This implies that corruption has a negative impact on economic growth and development.

Keywords: corruption, economic growth, economic development, Sub-Saharan Africa

JEL classification: C33, F43, F63, O47, O55

DOI: 10.7176/JESD/15-7-04

Publication date: September 30th 2024