Corruption and sustainable growth : comparative analysis of Sub-Sahara Africa and East Asia
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2015
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2558
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eng
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343 leaves
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b191181
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This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
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Forson, Joseph Ato (2015). Corruption and sustainable growth : comparative analysis of Sub-Sahara Africa and East Asia. Retrieved from: https://repository.nida.ac.th/handle/662723737/6250.
Title
Corruption and sustainable growth : comparative analysis of Sub-Sahara Africa and East Asia
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Abstract
Contemporary works on the devastating effects of corruption on well-being
have mainly been explored in relation to cconomic development (ED) at the macro
and micro levels, ignoring issues that pertain to sustainability. As a consequence,
resource-rich economies such as the ones in Sub-Sahara Africa (SSA) and elsewhere
are increasingly at risk of losing out through over exploitation. This poses as a threat
which may adversely affect inter-temporal social welfare and in effect keep the status
quo on inequality and deprivation.
The purpose of this research therefore is in twofold: 1) to identify and study
the sources of corruption and; 2) to assess the effect of corruption on economic and
sustainable outcomes between Sub-Sahara Africa and East Asia (EA). The study
extends conventional factors regarding the sources of corruption in contemporary
literature with the ones that are institutionally embedded to answer the question on
whether traditional sources of corruption holds in the face of effective corruption
controls in both Sub-Sahara Africa and East Asia.
The study uses unbalanced panel data on 22 economies in Sub-Sahara Africa
and 15 in East Asia. Secondary data were collected from 1970 to 2013 on most of the
croeconomic indicators and from 1995 to 2013 on some of the
. The study measured sustainability using genuine wealth per ca
contrast to growth in GDP per capita, which measures economic growth. For the
purpose of consistency and to address the endogeneity problem, three different
econometric estimators were used to estimate the empirical results. The secondary
a were collected from recognizable sources such as the World Bank, Tr
tional, Freedom House, Polity IV Project, and Heritage Foundati
others.
The empirical results succinctly show some of the determinants identified
under the three theories of corruption were variedly related amidst some level of
differences. Regarding the relationship between corruption and sustainable growth,
there were divergence from the popular notion of corruption being positively
correlated with growth in GDP per capita. Rather, the study found a negative
relationship when regressed on genuine wealth per capita on SSA sample. Evidence
of the resource-curse hypothesis were also captured in this study especially on SSA.
The study also found elements of colonial legacy to be responsible for Africa's poor
choices of economic policy over the past years evident in the quality of institutions.
However, the relation in EA was in contrast as there was a positive relationship
between corruption and sustainable growth. The differences in the outcomes among
the regions were linked to the effectiveness of existing institutions regarding the
formulation of sound policies to address societal challenges. Moreover, controlling
simultaneously for growth related factors and institutional factors, the study found
East Asia's outward trade policy backed by broad-base growth in agriculture as an
important input that partly explains its path.
The study in this regard was able to signal that incidental and systematic
corruption poses a long-term threat to sustainability. A number of recommendations
to that effects were made to SSA and economies in EA that shares similar challenges
on deepening good governance, professionalizing the civil service, and upholding the
rule of law to reduce the level of impunity. Bodies responsible for the implementation
anticorruption measures in SSA should be independent in practice from
ment. East Asia should on the other hand continue in its appro
fighting corruption in order to enhance the well-being of its citizens while working to
enhance areas such as democracy and climate change. The study concludes by
reechoing the need to adopt a broad-based approach to the conceptualization of well-
being.
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Thesis (Ph.D. (Development Admininstration))--National Institute of Development Administration, 2015