Journal of Economics and Development Studies

The impact of Corruption on the Soundness of the Banking Sector and on the Economic Growth in MENA Countries
Najah Souissi-Kachouri

Abstract
The purpose of this article is to study the effect of corruption on the soundness of the banking sector and on the economic growth of a group of countries in the MENA region during the period 2000-2018. This work is developed in two stages. As a first step, we conduct an empirical study on this panel of countries using the static panel data method and we show that the omnipresence of corruption affects the soundness of the banking sector in these economies. We show that this result is robust across different corruption indices. In the second stage, we estimate a model of economic growth using the instrumental variable method for the same sample of countries. We show that the banking sector in these economies constitutes a transmission channel for the effects of corruption on economic growth.

Full Text: PDF     DOI: 10.15640/jeds.v10n2a1