Effects of Corruption and the Black Economy on Economic Growth in the CFA Franc Zone Countries
Raphaël Erick Assoa Essono, Ibrahim Nji Ngouhouo
Asian Journal of Education and Social Studies · pp. 33–45 · Published 2 Jul 2021
10.9734/ajess/2021/v19i130457Abstract
We conducted this study to empirically analyse the effects of corruption and the underground economy on economic growth in the case of the CFA franc zone countries over the period 2000-2016. To do so, we have carried out econometric estimations using panel data. Our empirical results obtained by the PMG (Pooled Mean Group) method confirm a negative relationship between economic growth and the underground economy in the short and long term. However, the long-run effect of corruption on economic growth is positive, while this effect becomes negative in the short run. The results could provide insight into different ways of fighting corruption and the shadow economy.
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