REGS Outils de lecture

The purpose of this paper is to prove that corruption has a damaging effect on economic performance in the developing countries, by using the GMM estimator system for linear dynamic panel data models on a sample covering up 16 countries from 1984 to 2014. The empirical analysis is divided into three parts. First, we have tested the hypothesis that the instability of political institutions has a negative effect on economic growth. Throughout the second part of paper, we have studied the channels through which the instability of political institutions affects economic growth. Finally, in the third part, we have explained the impact of democratic institutions on corruption. The conducted results have shown that the type of political institutions is the base of the most important game in determining the reform of the country's economic behavior. Thus, we can conclude that in MENA countries, the driving force of the most interesting economic growth is human resource. Identically, corruption is among the major institutional failures.