Preprint Article Version 1 This version not peer reviewed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)

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

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