Article

 

THE CAUSALITY BETWEEN CORRUPTION AND HUMAN DEVELOPMENT IN MENA COUNTRIES: A PANEL DATA ANALYSIS (p.63-84)

by

Amrane Becherair, HIGH NATIONAL SCHOOL OF STATISTICS AND APPLIED ECONOMICS

Mourad Tahtane, MEDEA UNIVERSITY

Keywords : Human development, MENA countries, corruption, panel data Analysis, Granger causality

JEL classification : D73, O15, C12, C23

Abstract

The present paper investigates the relationship between Corruption and Human Development based on the notion of causality in the context of panel data. In Middle East and North Africa countries during 1996-2012. We find that, clearly negative correlation between corruption and human development in each of the years, this impact be more intensify in 2012 (46.30%), which indicates the deterioration in the status of governance compared to 1996 (17.10%) and increase in the impact of corruption on human development in the MENA World. The empirical results suggest that Human development causes corruption in MENA countries (prob=0.0508). Hence, causality here is unidirectional. Results show that, corruption causes human development indirectly through political stability Political and health expenditure channels. In the end, The MENA countries must develop a national anti-corruption strategy.