Foreign higher education and corruption: is host country knowledge a blessing or a curse? Empirical evidence from MENA countries

Abstract

The present study aimed to investigate the relationship between foreign higher education and corruption in 14 home countries in the MENA region and 13 host countries from 2007 to 2021. Panel-estimated generalized least squares, robust least squares MM estimation, dynamic panel data estimation, and one-step difference generalized method of moments was used to overcome heterogeneity and endogeneity issues and increase robustness. The study adopted the positive grease-the-wheels theory of corruption and the greed or need (GONE) theory in which the need for corruption develops into greed for corruption, revealing a significant positive relationship between foreign higher education and corruption in the MENA countries. Meanwhile, the sand-in-the-wheel theory of corruption and anti-corruption mechanisms that encourage less greed per the GONE theory revealed a significant negative relationship between foreign higher education and corruption in origin countries after students returned to their home countries. The study findings support the idea that foreign knowledge is a blessing for MENA countries. Furthermore, there was a significant positive relationship between foreign higher education and corruption in the host countries because students adapted to the host country’s environment. The main conclusion was that governments should encourage students to study abroad in countries with less corruption, supporting the main hypothesis, which posited that ethics and values are adopted abroad and transferred to home countries. Furthermore, constitutional reform and economic development should be adopted to implement the anti-corruption system and control public spending on education.