Preprint Article Version 1 This version is not peer-reviewed

The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis

Version 1 : Received: 3 February 2018 / Approved: 7 February 2018 / Online: 7 February 2018 (13:57:56 CET)
Version 2 : Received: 23 February 2018 / Approved: 23 February 2018 / Online: 23 February 2018 (13:26:23 CET)
Version 3 : Received: 25 February 2018 / Approved: 26 February 2018 / Online: 26 February 2018 (15:38:23 CET)

How to cite: Boussalham, H. The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis. Preprints 2018, 2018020065 (doi: 10.20944/preprints201802.0065.v1). Boussalham, H. The Consequences of Corruption on Economic Growth in Mediterranean Countries: Evidence from Panel Data Analysis. Preprints 2018, 2018020065 (doi: 10.20944/preprints201802.0065.v1).

Abstract

This study attempts to assess the impact of corruption on economic growth in the Mediterranean countries, during the period from 1998 to 2007. Econometric analysis using panel regression has been adopted to test this effect. Individual effects models such as random effects model and fixed effects model were applied to the study sample of 160 observations, and to choose the suitable model, we implemented several tests. For our analysis, we used a basic model that includes the dependent variable GDP per capita as a factor of economic growth and the corruption perception index as the independent variable concerned. Then we completed the model with several standardized macroeconomic control variables mentioned above and applied the individual effects models. The outcomes illustrate that corruption has a negative impact on the selected Mediterranean countries’ economic growth.

Subject Areas

Corruption; Economic growth; Panel Data

Readers' Comments and Ratings (2)

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Comment 1
Received: 23 February 2018
Commenter: Volodymyr Shevchuk (Click to see Publons profile: )
The commenter has declared there is no conflict of interests.
Comment: It's good to say I found it an engaging read. During the research, authors assessed the possible impact of corruption in several countries of the Midderetian region. Aim and title seem clear and informative enough. Researchers employed reliable methods and presented data in an appropriate way, although I would recommend adding bar graphs to make it look more presentable.

Talking about the significance and the relevance of the study, what does this study add to what was already known? Part of the article's title "the Consequences of Corruption on Economic Growth" can make you assume that corruption has a negative impact on the economy, by default. Although that is the result authors obtained after the study has been completed, they also provide an interesting overview of how corruption could possibly be beneficial for an economic growth.

The conclusions of the study support previous findings mentioned and explained in the literature review section that corruption negatively affects economic growth in the countries of the Mediterranean.

Other comments:

page 1. You wrote that "One of the accepted definitions is « the abuse of the power and the public influence for private purposes.» but didn't provide any reference. Who's definition is this? Who accepts this definition? Please clarify.

page 1-2. Again, you state that "According to Transparency International, corruption is widespread in more than sixteen countries of the Mediterranean region..." without any supporting evidence. Please state the source and provide a proper reference.

page 2. "It has been argued that corruption is less detrimental..." - argued by whom? Needs explanation.

At last, this study doesn't add greatly to what was already known.
+ Respond to this comment
Response 1 to Comment 1
Received: 26 February 2018
Commenter: Hicham Boussalham
The commenter has declared there is no conflict of interests.
Comment: Thank you for your feedback. I find the comments very useful, and changes have been made.
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