Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach
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Date
2018
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Sumy State University
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Abstract
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.
Keywords
зростання, рост, growth, інвестиції, инвестиции, investment, корупція, коррупция, corruption, плавна поступова регресія, гладкая пороговая регрессия панели, panel smooth threshold regression
Citation
Nguedie, Y.H.N. (2018). Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach. SocioEconomic Challenges, 2(1), 63-68. DOI: 10.21272/sec.2(1).63-68.2018