The Destructive Effect of Corruption on Economic Growth in Mali: a Nonlinear Model Analysis

Oyibo Paul Vivien, Brou Djandji Emmanuel, Anzian Kouamé Marcel and Djeban Koffi Mouroufié Emmanuel

Applied Economics and Finance, 2023, vol. 10, issue 1, 105112

Abstract: A growing body of empirical work has raised awareness of the destructive effect of corruption on economic development, although no existing study has considered the threshold value at which corruption impedes economic growth. This study assesses the effect of corruption on economic growth by adopting a non-linear approach to determining the corruption threshold. By analyzing the effect of corruption on economic growth in Mali over the period 1988 to 2021, this study examines whether there is evidence of an inverted U-shaped relationship between economic growth and corruption. The threshold effect of corruption is assessed using an augmented quadratic model. The results confirm the existence of an inverted U-shaped relationship between corruption and economic growth on the one hand and show the existence of a long-run relationship between these variables on the other hand, thus validating our initial hypothesis. Furthermore, the results show that economic growth peaks when the corruption perception index reaches 0.07 points. The main lessons to be drawn from these results are that below this threshold, corruption becomes a lubricant for economic growth, while above this threshold, it constitutes a brake on economic growth in Mali.

Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://redfame.com/journal/index.php/aef/article/download/5915/6035 (application/pdf)
https://redfame.com/journal/index.php/aef/article/view/5915 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:rfa:aefjnl:v:10:y:2023:i:1:p:105112

Access Statistics for this article

More articles in Applied Economics and Finance from Redfame publishing Contact information at EDIRC.
Bibliographic data for series maintained by Redfame publishing ().