The Causality Between Corruption and Economic Growth in MENA Countries: A Dynamic Panel-Data Analysis
Purpose: To contribute to the ongoing debate, this study examines the impact of corruption on economic growth in the Middle East and North Africa (MENA) region between 2000 and 2021 using a Customized Corruption Index-CCI and panel data on MENA countries. These countries were selected because they are understudied in the economic literature, and despite the World Bank's recent emphasis on corruption in the developing world, the MENA countries have received little attention. Design/Methodology/Approach: The researcher used Cobb-Douglas functional form to test corruption in MENA using a customized index CCI to track corruption over almost 20 years/ then used the dynamic panel data GMM. Findings: The findings indicate that there is a negative correlation between corruption and economic growth, but this is not consistent across all MENA nations. Practical Implications/limitations: First, the relatively recent lack of data from MENA nations. This issue is related to the inaccessibility of data for many MENA countries, particularly regarding the returns on resources, private malfeasance, and other variables in Gulf countries. In addition, researcher encountered several restrictions, such as electricity and internet outages, due to the fact that he is from Lebanon, a country whose citizens have endured difficult living conditions since the Lebanese crisis began in 2019. Originality/value: Demonstrating a customized index that suits the characteristics of MENA countries to peculiarly measure corruption in this region/ the outcome of the Customized Corruption Index-CCI is then compared to CPI and CC-from WGI.