Determinants of Corruption: The Case of Sub-Saharan Africa

Abstract

Corruption has been an epidemic in Africa since the age of colonization. The average level of corruption in Sub-Saharan Africa has been on the rise since. The results support the theory of self-reinforcing corruption in the sense that past corruption levels become an important determinant of current corruption levels due to strategic complementarity. The gap between more corrupt and less corrupt countries stays the same as more corrupt countries turning into more corrupt and less corrupt countries turning into less corrupt, demonstrating that corruption is pervasive in Sub-Saharan Africa. For the institutional determinants, we found that increase in political stability, better regulatory quality and higher level of democracy decreases the level of corruption in Sub-Saharan Africa. For the economic determinants, we found that a higher level of development and higher trade integration decreases the level of corruption and higher government expenditure and higher level of natural resources increases the level of corruption in Sub-Saharan Africa. For the socio demographic determinants, we found that higher level of infrastructure decreases the level of corruption while higher share of women in labor force, higher level of population and higher level of urbanization increases corruption in Sub-Saharan Africa.