Corruption, Investment and Economic Growth in Developing Countries: A Panel Smooth Transition Regression Approach

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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.

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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

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