Corruption, Investment and Growth in Central Africa: Do Dynamic and Bidirectional Interactions Exist?
摘要
This article explores the dynamic interactions between corruption, investment, and economic growth in the CEMAC zone. Using a panel VAR (Vector Autoregressive) specification and a GMM estimation method, the study reveals dynamic linkages among these variables. The results indicate that corruption hinders economic growth, while economic expansion contributes to reducing opportunities and incentives for corruption. Furthermore, corruption discourages foreign direct investment and public investment, but is positively associated with domestic private investment, suggesting a greasing the wheels effect in the CEMAC zone. The policy recommendations include strengthening anti-corruption governance in public investment management. This can be achieved by enforcing transparency and accountability in public procurement, conducting independent audits of large infrastructure projects, and using digital tools to track and report public expenditure in real time. Another recommendation is to create conditions for inclusive economic growth to reduce corruption incentives. This can be achieved by promoting private sector development through regulatory simplification and improved legal frameworks, expanding access to education, employment, and entrepreneurship to reduce reliance on rent-seeking behaviours, and encouraging investment in sectors that generate broad-based economic opportunities.