INVESTIGATING THE CAUSAL RELATIONSHIP AMONG CORRUPTION, ECONOMIC FREEDOM AND ECONOMIC GROWTH IN SELECTED SUB-SAHARAN AFRICAN COUNTRIES

Abstract

 a significant challenge for many countries and has negative impacts on economic growth. This study aims to investigate the causal relationship among corruption, economic freedom, and economic growth in selected Sub-Saharan African (SSA) countries using Granger ca

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Corruption is a significant challenge for many countries and has negative impacts on economic growth. This study aims to investigate the causal relationship among corruption, economic freedom, and economic growth in selected Sub-Saharan African (SSA) countries using Granger causality test within a multivariate cointegration and error-correction framework for the 1996-2014 period. The findings indicate that economic freedom Granger-causes economic growth in the short term, while economic freedom and economic growth Granger-cause corruption in the long term. Furthermore, the results demonstrate positive unidirectional Granger causality from economic freedom to economic growth in the short term and positive unidirectional Granger causality from economic freedom and economic growth to corruption in the long term in SSA countries. These findings have important policy implications for the region