SocioEconomic Challenges (SEC)

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    Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach
    (Sumy State University, 2018) Nguedie, Y.H.N.
    This article analyzes for a sample of 110 countries between 2006-2016, the relationship between cor-ruption, investment and growth. Using the Panel Smooth Transition Regression (PSTR), results show that there is a non-linearity between growth and investment which depends on the level of corruption, characterized by a smooth transition between the two extreme regimes. More precisely, the results ob-tained suggest that the sensitivity of growth to investment is higher in countries with a low degree of corruption. By elsewhere we also find a positive direct impact of the corruption on growth.