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

Shrabani Saha and Mohamed Sami Ben Ali

Economic Analysis and Policy, 2017, vol. 54, issue C, 83-95

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.

Keywords: Corruption; Economic development; Democracy; Economic freedom; MENA countries (search for similar items in EconPapers)
JEL-codes: E31 E3 C33 P44 (search for similar items in EconPapers)
Date: 2017
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DOI: 10.1016/j.eap.2017.02.001

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