Investigating the Causality between Corruption and Economic Growth: A Systematic Review

  • Muhammad Hafizuddin Yusof Tentera Udara Diraja Malaysia, Markas Pemerintahan Bantuan Udara, Shah Alam
  • Muhammad Abu Hanifah Mohd Haniff Tentera Udara Diraja Malaysia, Markas Pemerintahan Bantuan Udara, Shah Alam
  • Zulaikha Kamaruddin Universiti Teknologi MARA Shah Alam
  • Nurul Aifa Mohd Jaafar Universiti Teknologi MARA Shah Alam
  • Shamsul Baharin Saihani Universiti Teknologi MARA Shah Alam
Keywords: Corruption, economic growth, Systematic Reviews, PRISMA

Abstract

This study aims to establish a systematic examination of the existing literature pertaining to the causal relationship between corruption and its impact on a nation economic growth. In line with established methodological guidelines, particularly the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA), this research adopts a structured approach to comprehensively survey the relevant scholarly landscape. To construct a robust foundation for this investigation, a thorough search for scientific papers within the Scopus and Web of Science (WoS) databases, spanning the years from 2012 to 2022 was conducted. Our selection process ultimately led to the identification and analysis of seven publications that offer substantial empirical insights into the chosen domain of inquiry. Through a careful review of these research papers, a compelling pattern that corruption exerts a profound significant influence on various dimensions of economic growth within a nation emerged. Specifically, the synthesis of the extant literature suggests that corruption exhibits a discernible causative effect on critical economic parameters, notably including but not limited to purchasing power, country debt, political stability and foreign direct investment (FDI). In summary, the amalgamation of these scrutinized research findings underscores the substantial and multifaceted role of corruption as a causal factor in influencing economic growth dynamics. This investigation not only contributes to a deeper understanding of this critical relationship but also underscores the importance of anti-corruption measures in promoting sustained economic development and stability on a national scale.

Downloads

Download data is not yet available.

References

Abu, N. & Karim, M.Z.A. (2015). The Causal Relationships among Corruption, Political Instability, Economic Development and Foreign Aid: Evidence from the Economic Community of West African States. Journal of Applied Economic Sciences, 10(1).
Afonso, A. & de Sá Fortes Leitão Rodrigues, E. (2022). Corruption and economic growth: does the size of the government matter? Economic Change and Restructuring, 55(2), 543-576.
Akkoç, G. K. & Durusu-Ciftci, D. (2021). Testing “Grease the Wheels” Hypothesis for Corruption on Commonwealth of Independent States.
Antoni, A., Masri, R., Ahmad, A.M., Muslim, I., Nasfi, N., Sabri, S. & Rahmad, R. (2019). The Relationship between the Level of Corruption and Economic Growth in Indonesia: An Investigation using Supply Chain Strategy and Bounds Test. International Journal of Supply Chain Management, 8(6).
Bardhan, P. (1997). Corruption and Development: A Review of Issues. Journal of Economic Literature, 35(3), 1320–1346.
Ben Ali, M. S., Fhima, F. & Nouira, R. (2020). How does corruption undermine banking stability? A threshold nonlinear framework. Journal of Behavioral and Experimental Finance, 27, 100365.
Burnham, J. F. (2006). Scopus database: a review. Biomed Digit Libr, 3, 1.
Dinc?, G., Dinc?, M. S., Negri, C. & B?rbu??, M. (2021). The Impact of Corruption and Rent-Seeking Behavior upon Economic Wealth in the European Union from a Public Choice Approach. Sustainability, 13(12), 6870.
Erum, N. & Hussain, S. (2019). Corruption, natural resources and economic growth: Evidence from OIC countries. Resources Policy, 63, 101429.
Fajar, M. & Azhar, Z. (2018). Indeks Persepsi Korupsi dan Pembangunan Manusia Terhadap Pertumbuhan Ekonomi di Negara-Negara Asia Tenggara. Jurnal Ecogen, 1(3), 1–7.
Haruna, A. A. & Abu Bakar, A. S. (2021). Interest rate liberalization and economic growth nexus: does corruption matter? Journal of Financial Crime, 28(3), 906-925.
Hoinaru, R., Buda, D., Borlea, S. N., V?idean, V. L. & Achim, M. V. (2020). The impact of corruption and shadow economy on the economic and sustainable development. Do they “sand the wheels” or “grease the wheels”? Sustainability, 12(2), 481.
Kurniawan, Y., Ratnasari, R. T. & Mustika, H. (2020). The corruption and human development to the economic growth of OIC countries. JEBIS: Jurnal Ekonomi dan Bisnis Islam, 6(2), 189-200.
Lambsdorff, J. G. (2002). Corruption and rent-seeking. Public Choice, 113(1), 97-125.
Liberati, A., Altman, D. G., Tetzlaff, J., Mulrow, C., Gotzsche, P., Ioannidis, J. P., Clarke, M., Devereaux, P. J., Kleijnen, J. & Moher, D. (2009). The PRISMA Statement for reporting systematic reviews and meta-analysis of studies that evaluate health care interventions: Explanation and elaboration. Annals of Internal Medicine, 151(4), W11–W30.
Mimoun, M. B., Aljeefri, I. & Raies, A. (2016). Piety in Islam, financial corruption and economic growth: a theoretical framework. Journal of Islamic Banking and Finance, 3(1), 112-139.
Mo, P. H. (2001). Corruption and economic growth. Journal of Comparative Economics, 29(1), 66-79.
Moher, D., Liberati, A., Tetzlaff, J., Altman, D. G. & PRISMA Group*. (2009). Preferred reporting items for systematic reviews and meta-analyses: the PRISMA statement. Annals of Internal Medicine, 151(4), 264-269.
Moiseev, N., Mikhaylov, A., Varyash, I. & Saqib, A. (2020). Investigating the relation of GDP per capita and corruption index. Entrepreneurship and Sustainability Issues, 8(1), 780.
Nur-tegin, K. & Jakee, K. (2020). Does corruption grease or sand the wheels of development? New results based on disaggregated data. The Quarterly Review of Economics and Finance, 75, 19-30.
Sandholtz, W. & Koetzle, W. (2000). Accounting for Corruption: Economic Structure, Democracy, and Trade. International Studies Quarterly, 44(1), 31–50.
Shaffril, H. A. M., Krauss, S. E. & Samsuddin, S. F. (2018). A systematic review on Asian farmers' adaptation practices towards climate change. Science of the Total Environment, 644, 683-695.
Shittu, W. O., Hassan, S. & Nawaz, M. A. (2018). The nexus between external debt, corruption and economic growth: evidence from five SSA countries. African Journal of Economic and Management Studies, 9(3), 319-334.
Swaleheen, M., Ben Ali, M. S. & Temimi, A. (2019). Corruption and public spending on education and health. Applied Economics Letters, 26(4).
Uroos, A., Shabbir, M. S., Zahid, M. U., Yahya, G. & Abbasi, B. A. (2022). Economic analysis of corruption: evidence from Pakistan. Transnational Corporations Review, 14(1), 46-61.
Wong, Z. W. V., Chen, F. & Yiew, T. H. (2021). Effects of rent-seeking on economic growth in low-income economies. Buletin Ekonomi Moneter dan Perbankan, 24(2), 205-220.
Yuan, T. K. & Ishak, S. (2022). Relationship between Corruption, Governance, and Economic Growth in ASEAN. Shifting Economic, Financial and Banking Paradigm: New Systems to Encounter COVID-19, 119-130.
Yunan, Z. Y. (2020). Does corruption affect Islamic banking? Empirical evidence from the OIC countries. Journal of Financial Crime, 28(1), 170-186.
Published
2023-11-13
How to Cite
Yusof, M. H., Mohd Haniff, M. A. H., Kamaruddin, Z., Mohd Jaafar, N. A., & Saihani, S. B. (2023). Investigating the Causality between Corruption and Economic Growth: A Systematic Review. Information Management and Business Review, 15(4(SI)I), 492-501. https://doi.org/10.22610/imbr.v15i4(SI)I.3625
Section
Research Paper