Nexus between Corruption and Economic Growth in East African Community States

Articles in Press

Document Type : Research Paper

Authors

1 School of business and Economics, Machakos University, Machakos, Kenya

2 School of business and Economics, University of Embu, Embu, Kenya

3 School of business and Economics, Kenyatta University, Nairobi, Kenya

10.22059/ier.2024.374266.1007977

Abstract

Corruption indicators in East African Community states indicates that the region is characterized by high levels of corruption. These individual countries in the region, have also failed to attain and sustain an average of 7 per cent required growth rate to meet the sustainable development goals. This necessitated a study to investigate the effects of corruption on economic growth in East Africa Community states. The general objective of this study was to investigate the nexus between corruption and economic growth. The study employed system generalized methods of Moments estimation technique to establish the nexus. The findings revealed that there exists a relationship between control of corruption and economic growth. There was also a nexus between corruption perception index and gross domestic product. Based on the Mo Ibrahim index, the study revealed that there was no statistically significant connection between corruption and economic growth. Overall findings revealed that there was a statistically significant association between control of corruption, corruption perception index, Mo Ibrahim index, gross domestic product, political stability and trade openness. It is thus recommended that respective East Africa Community states’ governments should implement institutional reforms that inform government effectiveness, strengthen rule of law and enhance accountability.

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Iranian Economic Review

Articles in Press, Accepted Manuscript
Available Online from 02 November 2024

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