Corruption and Economic Development New Evidence from the Middle Eastern and North African Countries

Abstract

This paper analyzes the role of economic development in curbing corruption by focusing on political and economic freedoms for a sample of Middle Eastern and North African (MENA) countries over the period 1984-2013. In addition, the analysis investigates whether political and economic freedoms lower corruption in natural-resource-rich countries by considering both linear and non-linear effects. The results reveal that the interactive relationship between economic and political freedoms and government size leads to a reduction in corruption. Furthermore, our results show robust support to suggest that an increase in income increases corruption in natural-resource-rich countries. Overall, our findings provide some relevant policy implications for MENA countries.

Keywords: corruption, economic development, democracy, economic freedom, MENA Countries

JEL Classification: E31, E3, C33, P44