CORRUPTION AND ECONOMIC GROWTH IN NORTH AFRICA AND THE MIDDLE EAST: A CROSS-COUNTRY ANALYSIS

Abstract

Purpose: This article examines the impact of corruption on economic growth in North African and Middle Eastern countries. It aims to uncover the extent to which corruption influences economic performance and to provide policy recommendations for mitigating these effects. Methodology: A comprehensive literature review was conducted, analyzing existing studies on corruption and economic growth in the specified regions. Empirical data from various sources were used to perform a quantitative analysis, employing econometric models to identify correlations and causations. Results: The findings indicate a significant negative relationship between corruption and economic growth. High levels of corruption are found to stifle investment, reduce government efficiency, and deter foreign direct investment, thereby hampering economic development. The results highlight that countries with lower corruption levels tend to exhibit higher economic growth rates. Practical Implications: The study suggests several practical measures for policymakers, including strengthening anti-corruption laws, improving transparency and accountability in government operations, and fostering a culture of integrity within public and private sectors. The recommendations aim to create an environment conducive to sustainable economic growth. Originality/Value: This article contributes to the existing literature by providing a detailed analysis of the North African and Middle Eastern regions, which have been relatively under-researched in this context. The study's unique focus on these regions offers valuable insights and tailored recommendations for combating corruption and promoting economic growth.