Corruption and Economic Development: New Evidence from the Middle Eastern and North African Countries

Abstract

This paper analyses the role of economic development in curbing corruption by focusing on political and economic freedoms for a sample of Middle Eastern and North African (MENA) countries over the period 1984-2013. In addition, the analysis investigates whether political and economic freedoms lower corruption in natural-resource-rich countries by considering both linear and non-linear effects. The results reveal that the interactive relationship between economic and political freedoms and government size leads to a reduction in corruption. Furthermore, our results show robust support to suggest that an increase in income increases corruption in natural-resource-rich countries. Overall, our findings provide some relevant policy implications for MENA countries.