Modelling and Analysis of the Impact of Corruption on Economic Growth and Unemployment

Dejen Ketema Mamo (), Enat Agachew Ayele () and Shewafera Wondimagegnhu Teklu ()
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Dejen Ketema Mamo: Debre Berhan University
Enat Agachew Ayele: Debre Berhan University
Shewafera Wondimagegnhu Teklu: Debre Berhan University

SN Operations Research Forum, 2024, vol. 5, issue 2, 1-24

Abstract: Abstract This study explores the complex interplay between economic growth, corruption, and unemployment in the context of sub-Saharan Africa. Employing a new, dynamic mathematical model, we move beyond static correlations to analyze how these factors influence each other over time. Our findings suggest corruption acts like a parasite, siphoning resources away from productive activities and hindering economic progress. This translates to fewer jobs and higher unemployment rates. Conversely, a focus on efficient resource allocation and sustainable development fosters economic growth. Additionally, a robust entrepreneurial sector creates new employment opportunities, further reducing unemployment. The model underscores the need for a multifaceted approach. While effective anti-corruption measures are crucial, so are policies that promote private ownership and job creation within existing businesses. Imagine a three-pronged strategy: combating corruption, stimulating existing job markets, and fostering entrepreneurship. Furthermore, strengthening institutions to tackle corruption allows for swifter responses, minimizing its negative impact on economic growth. By simultaneously addressing corruption and fostering job creation through this multifaceted approach, we can create a balanced and stable economic environment conducive to sustainable development and a brighter future for sub-Saharan Africa.

Keywords: Corruption; Unemployment; Economic growth; Mathematical model; Stability analysis (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s43069-024-00316-w

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