Impact of institutions on the corruption-financial development nexus in Africa: non linearities and thresholds

IF 5 2区经济学 Q1 ECONOMICS

Structural Change and Economic Dynamics Pub Date : 2024-11-28 DOI:10.1016/j.strueco.2024.11.013

Gislain Stéphane Gandjon Fankem, Wendelin Ndzana

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Abstract

In this article, using a sample of African countries, we test the hypothesis of a non-linear effect of corruption on financial development in the presence of weak public institutions. We also determine the institutional quality threshold at which corruption 'greases' or 'sands' the wheels of financial development. We carry out this empirical study using the dynamic panel quadratic polynomial approach and the panel smooth transition regression (PSTR) approach. Three main results emerge. First, the relationship between corruption and financial development is non-linear and U-shaped. This relationship remains non-linear when the weak quality of public institutions is taken into account. Second, the effect of corruption on financial development depends on the quality of institutions. But the nature of the effect depends on the proxy for institutional quality used. Third, there is an institutional quality threshold at which the relationship between corruption and financial development becomes non-linear.

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制度对非洲腐败与金融发展关系的影响：非线性和阈值

在本文中，我们以非洲国家为样本，检验了在公共机构薄弱的情况下腐败对金融发展的非线性影响的假设。我们还确定了腐败“润滑”或“阻碍”金融发展车轮的制度质量门槛。本文采用动态面板二次多项式方法和面板平滑过渡回归（PSTR）方法进行实证研究。主要有三个结果。首先，腐败与金融发展的关系是非线性的、u型的。当考虑到公共机构的薄弱质量时，这种关系仍然是非线性的。其次，腐败对金融发展的影响取决于制度的质量。但这种影响的性质取决于所使用的机构质量代理。第三，存在一个制度质量门槛，超过这个门槛，腐败与金融发展之间的关系就变成了非线性关系。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Structural Change and Economic Dynamics ECONOMICS-

CiteScore

9.60

自引率

4.90%

发文量

159

期刊介绍： Structural Change and Economic Dynamics publishes articles about theoretical, applied and methodological aspects of structural change in economic systems. The journal publishes work analysing dynamics and structural breaks in economic, technological, behavioural and institutional patterns.