Growth in Human Development: The Role of Corruption

Ortega, Bienvenido; Casquero, Antonio; Sanjuán, Jesús

doi:10.1002/jid.2963

Cited by 15 publications

(17 citation statements)

References 48 publications

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“…Enquiries into the cause of differences in the level of human development is a crucial discussion in literature. Other factors which could affect human development aside income which have recently been recognized in literature are political or governmental factors such as corruption, government effectiveness and strength of institutions among others (Ortega et al, 2014). UNDP (1997b) asserted that corruption has a pervasive effect on poor people because it unbalances the mechanism of public choices to favour the rich and in the process limits the ability of a country to provide social safety net (SSN) for its people.…”

Section: Introductionmentioning

confidence: 99%

“…Low level of development in Sub-Saharan Africa (SSA) could suggest governance in this region has not impacted human welfare. Few empirical works have tried to look into this issue (Akçay, 2006;Adhikari, 2013;Ortega et al, 2014;Ahmad & Saleem, 2014). Their findings are however equivocal.…”

Section: Introductionmentioning

confidence: 99%

“…Existing studies have not been able to explain the nature and extent of the effect of corruption and government effectiveness on human development in SSA. The few studies found on this subject matter were conducted across regions, i.e., data of countries from different regions of the world were used for the studies (Akçay, 2006;Adhikari, 2013;Ortega et al, 2014;Ahmad & Saleem, 2014). Their findings could not reveal which part of the world is corrupt as they used panel data consisting of different countries across the world.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Akinbode¹,

Olabisi²,

Adegbite³

et al. 2020

JADE

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Aside economic factors causing low human development which have been extensively studied in literature, the implications of high level of corruption and weak governance prevalent in sub- Saharan African (SSA) countries have not been explored. The study assessed the effects of corruption, government effectiveness and their joint effect on human development in SSA. Data collected on thirty-seven (37) countries within the period of 2005 to 2018 were analyzed using system Generalized Method of Moment which was most suitable for the dataset. Results indicated that lagged human development index (P<0.01), government effectiveness (P<0.05), economic growth rate (P<0.1) and government health spending (P<0.1) had significant positive effect on human development while corruption and its interaction with government effectiveness did not. The results of Arrelano-Bond test of first order autocorrelation and second order autocorrelation of error term as well as the Sargan test and Hansen J test for validity of instrumental variables confirmed the validity of the model. The robustness of the estimation was established as the coefficient of the lagged dependent variable fell between the values in the fixed effect and pooled ordinary least square regression. The study recommended retraining and reorientation of government employees towards the mindset of effective service delivery and strong political will to achieve it, diversification of SSA economies alongside other growth stimulating policies such as reduced lending interest rate on loans meant for the real sector, improvement in the ease of doing business, improved funding of the health sector and proper monitoring of activities in the public service by concerned agencies to curb corruption where it is present.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Akinbode¹,

Olabisi²,

Adegbite³

et al. 2020

JADE

View full text Add to dashboard Cite

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“…On the other hand, corruption, the abuse of public power for private gain, has been found by many researchers to be sand in the wheels of an economy. Macro‐evidence suggests that corruption is detrimental to economic growth (Mauro, ), though perhaps only in institutional settings that are otherwise strong (Aidt, Dutta, & Sena, ); to foreign direct investment inflows (Wei, ) and to human development (Ortega, Casquero, & Sanjuán, ). Similarly, Fisman and Svensson () find that bribery has a negative effect on firm growth.…”

Section: Introductionmentioning

confidence: 99%

Public Sector Corruption and Trust in the Private Sector

Gillanders

Neselevska

2017

J of Intl Development

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In this paper we use data from the Afrobarometer surveys to demonstrate that there is an undesirable spill-over from petty corruption in the public sector to trust in private sector institutions. Our results show that experiencing bribery in the course of one's interactions with the public sector lowers one's trust in big private corporations, small businesses, and local traders. This finding holds even when we allow for perceptions of political corruption to enter the specification. We do not find any significant association between a measure of interpersonal trust and bribery experience which suggests that our findings with regards to market institutions are not driven by corruption lowering trust in general. Having to pay a bribe for household services, which is perhaps the setting most like a private sector transaction, is the corrupt interaction most strongly associated with the decline in private sector trust. We find some evidence that the spill-over is larger in democracies than in non-democratic regimes. Given the importance of trust in market institutions for the efficient functioning of an economy, our findings thus point to a previously unknown and potentially substantial cost of corruption and add to the case for anti-corruption efforts.JEL Classification: D73, K4, O10, O55

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“…Various studies have explored this relationship, and it has been well reported over some years that values of the HDI and CPI do have a statistically significant relationship (Ortega et al, 2014(Ortega et al, , 2016; suggesting that better human development is achieved when there are lower levels of corruption, or conversely that lower levels of corruption are found in countries with higher levels of human development. However, the strength of the relationship with CPI has been known to vary between the three components of the HDI.…”

Section: Hdi and Cpimentioning

confidence: 99%

Focussing on the Extremes of Good and Bad: Media Reporting of Countries Ranked Via Index-Based League Tables

Morse

2017

Soc Indic Res

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The paper provides the first published evidence for a 'U' shaped relationship between country 'league-table' ranking based on the Human Development Index (HDI) and Corruption Perception Index (CPI) and media reporting. The results suggest that the Extremity Hypothesis proposed by Heath (1996) applies to such data rather than the alternative of the Centrality Hypothesis. In the Extremity Hypothesis people are more likely to transmit information regarding extremes, perhaps because people value 'surprisingness' or think that others do so, and the inevitable polarity of league-tables would appear to invite greater attention on those countries that rank high and low. This is an important finding as it suggests that countries at these extremes could act as exemplars. However, this is not to say that at more regional scales the media may pick-up on differences between 'peer group' countries ranked towards the middle of the league-table. Much more attention needs to be given by researchers to the use of indicators and indices and what helps to influence this, especially as it would help inform further development of existing indicators/indices and the creation of new ones.

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Growth in Human Development: The Role of Corruption

Cited by 15 publications

References 48 publications

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Corruption, Government Effectiveness and Human Development in Sub-Saharan Africa

Public Sector Corruption and Trust in the Private Sector

Focussing on the Extremes of Good and Bad: Media Reporting of Countries Ranked Via Index-Based League Tables

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