Does corruption affect development outcomes differently in sub-Saharan Africa? Fresh evidence from Ghana

Abstract

AbstractThis study demonstrates that the effect of corruption on development might be dissimilar depending on how development is perceived. This study uses the linear and nonlinear ARDL bounds test estimation technique to cointegration with annual time series data (1980–2023 for WDI and 1995–2023 for Transparency International). Thus, the symmetric analysis reveals that corruption stimulates economic development in the long run; but in the short run, the effect is negative. However, the effect of corruption on sustainability is consistently negative in the short and long runs. The asymmetric analysis establishes a strong effect of corruption and corruption controls on economic development in the long run but with a weak effect in the short run. Yet, on sustainability, corruption has a weak consequence on genuine wealth per capita in the short run, but the long-run asymmetric effect is inconclusive. Governments in Africa, particularly Ghana must pay serious attention to the SDGs with recourse to the expedition of trial on environmental-related corruption cases. Strict adherence to environmental policies by MNEs must also be encouraged to stem the tide of the greenhouse effect (GHG).