Do corrupting activities hamper economic growth?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
John Kwaku Amoh ◽  
Kwasi Awuah-Werekoh ◽  
Kenneth Ofori-Boateng
Keyword(s):  
Economic Growth ◽  
Structural Equation ◽  
Content Type ◽  
Development Indicators ◽  
The World ◽  
Private And Public ◽  
World Economic ◽  
Development Goals ◽  
The Government ◽  
World Development

Purpose This study aims to examine the effect of corruption on the economic growth of Ghana and to establish the strength of relationships among corrupting activities. Design/methodology/approach The research used structural equation modelling on selected data from the World Economic Forum executive opinion survey on corrupting activities and data on economic growth measures from the world development indicators to achieve the research objectives. Findings The results show that all the observed corrupting activities (except diversion of public funds) adversely influence selected economic growth indicators. The study concludes that corrupting activities, independently and mutually impede Ghana’s economic growth. Research limitations/implications The research is limited by the availability of data, hence, quarterised data on selected variables from 2008 to 2017 were examined. Practical implications The results suggest that corruption encapsulates all the seven activities of corruption to one degree or another, which are economic growth hampering. Originality/value The study extends the corruption-economic growth nexus literature by incorporating several corrupting activities from multiple sectors/areas as follows: the government and politicians, private businesses, judiciary and citizens into a single model to test how these independently and mutually impede economic growth. By identifying and using specific corrupting activities from distinct and diverse sectors/areas to capture both the supply side and demand side of corruption and the private and public sectors, a better comprehension of the corruption-economic growth nexus is attained. This may aid emerging economies and anti-corruption agencies in drafting specific and targeted corruption reduction policies/programmes to minimise poverty and raise living standards to aid the realisation of sustainable development goals.

Does corruption cause tax evasion? Evidence from an emerging economy

2019 ◽  
Vol 22 (2) ◽  
pp. 217-232 ◽  
Author(s):  
John Kwaku Amoh ◽  
Abdallah Ali-Nakyea
Keyword(s):  
Emerging Economies ◽  
Tax Evasion ◽  
Structural Equation ◽  
Emerging Economy ◽  
Generation Process ◽  
Content Type ◽  
Five Dimensions ◽  
Development Indicators ◽  
The World ◽  
Development Goals

Purpose The purpose of this study is to examine the corruption-tax evasion nexus and to establish the strength of relationships among corrupting activities. Design/methodology/approach The research applied structural equation modelling on selected data from the World Economic Forum Executive Opinion Survey on corruption activities and data on tax evasion triggering factors from the World Development Indicators and the Bank of Ghana to test two hypotheses. Findings The test of the first hypothesis suggests that corrupting activities significantly cause tax-evading activities in Ghana; hence, there is at least one corrupting activity triggering tax evasion. Testing the second hypothesis revealed that corruption in Ghana exhibits all of the five dimensions of corruption that were examined. Hence, there is correlation among the corrupting activities. Research limitations/implications The research is limited by the availability of data; hence, only data for selected variables for the period were examined. Practical implications The results are indicative that most emerging economies tend to have more than one type of dominating corruption dimension, which are tax-evading triggers. Originality/value The study extends the literature by examining the various dimensions of corruption, analysing the strength of their relationships and how they impact tax evasion in an emerging economy. By identifying and employing specific corrupting activities, there is a better understanding and appreciation of the corruption-tax evasion nexus in the revenue generation process. This may aid emerging economies in the drafting of tax evasion and corruption reduction policies/programmes to ensure the achievement of sustainable development goals.

Drivers of Global Competitiveness and Economic Growth

2015 ◽  
pp. 13-27 ◽  
Author(s):  
Luìs Farinha ◽  
Joaquim Borges Gouveia ◽  
Sara Nunes
Keyword(s):  
Economic Growth ◽  
Structural Equation ◽  
Development Stage ◽  
Equation Model ◽  
Global Competitiveness ◽  
Economic Competitiveness ◽  
Advanced Economies ◽  
The World ◽  
World Economic ◽  
Definition Of

This chapter focuses on the issue of global competitiveness of the economies, based on the dimensions analyzed by the World Economic Forum in assessing the economic competitiveness of a large sample of countries. From the different stages of development of the countries, the study aims to help us to understand what pillars contribute most to the global competitiveness. Results based on structural equation model show what dimensions within each economic development stage best explain the competitiveness, helping us to realize even the performance achieved by the most advanced economies. Understanding the association of factor groups, pillars and related items, and levels of competitiveness may help academics to conduct new studies, as well as politicians in the definition of intervention priorities.

scholarly journals Dynamic Relations Between Public External Debt and Economic Growth in African Countries: A Curse or Blessing?

2020 ◽  
Vol 6 (3) ◽  
pp. 88
Author(s):  
Benjamin Ighodalo Ehikioya ◽  
Alexander Ehimare Omankhanlen ◽  
Godswill Osagie Osuma ◽  
Ofe Iwiyisi Inua
Keyword(s):  
Economic Growth ◽  
Specific Capacity ◽  
External Debt ◽  
Economic Activities ◽  
African Countries ◽  
Development Indicators ◽  
Long Run ◽  
The World ◽  
Dynamic Relations ◽  
The Government

This paper used the Johansen Cointegration test and system Generalised Method of Moments (sysGMM) to examine the dynamic relations between external debt and economic growth in 43 African countries over the period 2001–2018. The study used data from World Development Indicators (WDI) as published by the World Bank and the World Economic Outlook database as provided by the International Monetary Finance (IMF). The study provides an understanding of how the importance of external debt could be short-lived due to its misapplication. The result reveals evidence to support a long-run equilibrium relationship between external debt and economic growth in Africa. The result demonstrates that beyond a specific capacity, the short-run converges to equilibrium in the long-run and external debt would start to have a deteriorating impact on economic growth in Africa. The findings of this study reinforce the need for policymakers to ensure proper application of external debt on economic activities that would lead to sustained long-term economic performance. Moreover, the government and development partners must put in place a monitoring mechanism to ensure the efficient use of borrowed funds.

Anti-corruption may slow Tanzania’s industrialisation

2018 ◽  
Keyword(s):  
Economic Growth ◽  
Ad Hoc ◽  
Business Environment ◽  
Food Prices ◽  
Fiscal Year ◽  
Fuel Price ◽  
Content Type ◽  
Rapid Economic Growth ◽  
Private And Public ◽  
The Government

Subject Tanzania's economic prospects. Significance President John Magufuli’s ad hoc anti-corruption crackdown is directly impinging on economic growth, with effects reverberating through both the private and public sectors. However, Magufuli’s populist proclivities may be tempered by the need to maintain rapid economic growth to achieve the government’s industrialisation objectives. Recent overtures to improve the business environment could signal increasing government tolerance towards the private sector, but will be watched closely amid lingering concerns over erratic policy shifts. Impacts The government may have to rethink its export restrictions on metals as rising oil prices increase import costs. Falling food prices will continue to underpin low inflation despite successive fuel price hikes. The fiscal year 2018/19 (April 2018-March 2019) budget points to continued over-optimistic revenue projections.

Polarisation rises as recovery lags in Argentina

2017 ◽  
Keyword(s):  
Buenos Aires ◽  
Economic Policies ◽  
World Economic Forum ◽  
Content Type ◽  
The World ◽  
Regional Meeting ◽  
World Economic ◽  
Near Term ◽  
The Government ◽  
First Time

Significance The strike, held in protest over the government’s economic policies, took place as the World Economic Forum (WEF) held its Latin America regional meeting in Buenos Aires for the first time, and as Macri again tried to attract foreign investment back to Argentina. It came days after April 1 pro-government demonstrations brought out thousands in favour of Macri, which denounced ongoing teachers' strikes and the government of former President Cristina Fernandez de Kirchner, currently facing trial over financial mismanagement and money-laundering. Impacts Macri’s earlier strategy of avoiding the polarisation of recent years appears to be faltering. The CGT leadership is divided but will likely step up pressures as the elections approach. There is no likelihood of a near-term improvement in high levels of poverty.

scholarly journals Optimizing private and public mode of operation in major ports of India for better customer service

2018 ◽  
Vol 12 (1) ◽  
pp. 2-37 ◽  
Author(s):  
Deepankar Sinha ◽  
Shuvo Roy Chowdhury
Keyword(s):  
Customer Service ◽  
Government Control ◽  
Content Type ◽  
Mode Of Operation ◽  
The World ◽  
Private And Public ◽  
The Government ◽  
Liberalization Policy ◽  
Privatization Policy ◽  
Public Mode

PurposeThe Government of India announced its liberalization policy in the year 1991. Since then, the major ports in India introduced privatization in various forms into their operations. However, the share of total traffic (cargo) handled by major ports fell from 90 per cent in 1991 to around 70 per cent in 2015, losing share to minor ports. These major ports, except for the port of Kamarajar, are governed by the Major Port Trust Act, 1961. None of the Indian ports feature amongst the top 20 ports of the world. Interestingly, several ports in Asia, namely, seven ports from China, Singapore, Hong Kong and Malaysia are on that list. Several studies and reports have shown that privatization in India did not yield the desired results. Ports in India have adopted a hybrid mode of governance, aligned between a landlord port model and a service port model. This paper aims to address the question – What is the optimal way to mix privatisation and government control in the operations of major ports of India.Design/methodology/approachIn this paper, the authors attempt to develop an optimization model for port planners to decide on the optimum mix of privatized and self-managed operations so as to maintain efficiency and maximize revenue.FindingsThe model tested on a major port in the country shows that the present privatization policy followed by the port needs revision. A similar plan to revise their policies can be carried out for other major ports in the country.Originality/valueThe model is generic and can be used by any port in the world operating under conditions similar to those in India.

scholarly journals THE EFFECT OF INVESTMENT IN EDUCATION ON SOCIO-ECONOMIC DEVELOPMENT OF PAKISTAN

2018 ◽  
Vol 1 (2) ◽  
pp. 66-73
Author(s):  
Nayab Karim
Keyword(s):  
Economic Growth ◽  
Positive Impact ◽  
Physical Capital ◽  
Vital Role ◽  
School Enrollment ◽  
Education Sector ◽  
Development Indicators ◽  
Socio Economic Development ◽  
The Government ◽  
World Development

It is widely accepted that the education sector plays a vital role in the development of the economy and has a positive impact on the economic growth, this study is an attempt to explore the relationships among the investment in the human capital, physical capital and the school enrollment and its impact on the growth of Pakistan’s economy. This study focus on time series analysis, the data has traced from World Development Indicators from 1980 to 2018. The empirical results showed that the investment in physical capital and school enrollment has a positive significant impact on the growth of Pakistan’s economy. Therefore, the government of Pakistan should focus more on investment in education sector and thereby improve social prosperity.

Drivers of Global Competitiveness and Economic Growth

2020 ◽  
pp. 1968-1982
Author(s):  
Luìs Farinha ◽  
Joaquim Borges Gouveia ◽  
Sara Nunes
Keyword(s):  
Economic Growth ◽  
Structural Equation ◽  
Development Stage ◽  
Equation Model ◽  
Global Competitiveness ◽  
Economic Competitiveness ◽  
Advanced Economies ◽  
The World ◽  
World Economic ◽  
Definition Of

This chapter focuses on the issue of global competitiveness of the economies, based on the dimensions analyzed by the World Economic Forum in assessing the economic competitiveness of a large sample of countries. From the different stages of development of the countries, the study aims to help us to understand what pillars contribute most to the global competitiveness. Results based on structural equation model show what dimensions within each economic development stage best explain the competitiveness, helping us to realize even the performance achieved by the most advanced economies. Understanding the association of factor groups, pillars and related items, and levels of competitiveness may help academics to conduct new studies, as well as politicians in the definition of intervention priorities.

The world and Russia: Inflation is minimal, economic growth is slowing, risks are rising

2019 ◽  
pp. 5-23 ◽  
Author(s):  
Mikhail V. Ershov ◽  
Anna S. Tanasova
Keyword(s):  
Economic Growth ◽  
Financial Markets ◽  
World Economy ◽  
Domestic Demand ◽  
New Combination ◽  
Russian Economy ◽  
The World ◽  
World Economic ◽  
Money Creation ◽  
Main Factors

Russian economy has reached the low level of inflation, but economic growth has not accelerated. Moreover, according to official forecasts, in the following years it will still be low. The article concludes that domestic demand, which is one of the main factors of growth, is significantly constrained by monetary, budgetary and fiscal spheres. The situation in the Russian economy is still hampered by the decline of the world economic growth. The prospects of financial markets are highly uncertain. This increases the possibility of crisis in the world. Leading countries widely use non-traditional measures to support their economies in the similar environment. In the world economy as well as in Russia a principally new combination of factors has emerged, which create specific features of economic growth. It requires special set of measures to stimulate such growth. The article proves that Russian regulators have large unused potential to stimulate growth. It includes monetization, long-money creation, budget and tax stimuli. It is important that the instruments, which will be used, should be based on domestic mechanisms. This will strengthen financial basis of the economy and may encourage economic growth. Some specific suggestions as to their use are made.

Domestic Resource Mobilisation: A Structural Approacb

1993 ◽  
Vol 32 (4II) ◽  
pp. 1067-1078
Author(s):  
Saleem M. Khan
Keyword(s):  
Economic Growth ◽  
Financial Institutions ◽  
Foreign Assistance ◽  
High Rate ◽  
Domestic Saving ◽  
Capital Investments ◽  
External Resources ◽  
Private And Public ◽  
The Government ◽  
Enhance Efficiency

The Mobilisation of domestic resources and their efficient utilisation are two of the most crucial tasks in revitalising the economy of Pakistan. Historically, low saving fotmation and relatively higher targets of investment and economic growth made it imperative to depend on external resources. Despite heavy domestic borrowing from both private and public sectors, there still has remained an unmet resource gap that has necessitated dependence on foreign capital. I In recent years, the sources of foreign assistance have become scarce due to a growing shortage in world saving and growing domestic demand for budget appropriations in the western countries. If economic growth in Pakistan is to be sustained and selfgenerating, investment in physical and human development must be increased and mad more efficient. To meet this challenge, most of the capital will have to come from domestic sources. Hence, the focus of this paper is on harnessing domestic efforts to increase saving formation and to enhance efficiency of capital investments. Traditionally, the government of Pakistan has relied on conventional approaches to increasing domestic saving. First, the government has been encouraging greater saving by the private sector through a package of national saving schemes and by allowing financial institutions to introduce saving incentives. Saving-schemes and saving incentives have not produced satisfying results. Table 1 shows saving and investment in selected South Asian countries. Saving in Pakistan is very low and, indeed, among the lowest even when compared with neighbouring and other developing countries. Explanations of this failure include the low levels of income and high rate of inflation in the country.2 Moreover, the financial institutions have in general remained inefficient.

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