International Journal of Innovation and Applied Studies
ISSN: 2028-9324     CODEN: IJIABO     OCLC Number: 828807274     ZDB-ID: 2703985-7
Tuesday 16 July 2024






Custom Search


  • Contact us
  • Newsletter:

Connect with IJIAS

  Now IJIAS is indexed in EBSCO, ResearchGate, ProQuest, Chemical Abstracts Service, Index Copernicus, IET Inspec Direct, Ulrichs Web, Google Scholar, CAS Abstracts, J-Gate, UDL Library, CiteSeerX, WorldCat, Scirus, Research Bible and getCited, etc.  

Corruption and Economic Growth: Empirical Evidence from Algeria

Volume 8, Issue 3, September 2014, Pages 927–946

 Corruption and Economic Growth: Empirical Evidence from Algeria

Chaib Bounoua1 and Siham Matallah2

1 Department of Economics, University of Tlemcen, Tlemcen, Algeria
2 Department of Economics, University of Tlemcen, Tlemcen, Algeria

Original language: English

Copyright © 2014 ISSR Journals. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


This study investigates the impact of corruption on economic growth in Algeria over the period 1995-2011 by using the Heritage Foundation's freedom from corruption index and the World Bank's control of corruption indicator. The Johansen cointegration test has been applied in order to investigate the existence of long-run relationships among the tested variables. As well as, the vector error correction model (VECM) has been employed to analyze the long-run and short- run dynamic relationships among the various time series. The initial findings indicate that both 'freedom from corruption' and 'control of corruption' have long run positive effects on enhancing economic growth in Algeria. It is also revealed that the human capital has an insignificant positive impact on economic growth in the long term. Moreover, VECM analysis suggests that all explanatory variables have positive and insignificant short-run effects on promoting economic growth except the 'control of corruption' indicator. These results support the view that corruption sands the wheels of economic growth. Thus, the Algerian government should root out this scourge by finding the relevant solutions that must be supported with effective weapons such as transparency and tougher accountability standards.

Author Keywords: Corruption, Freedom from Corruption, Control of Corruption, Economic Growth, Algeria, Johansen Cointegration Test, VECM.

How to Cite this Article

Chaib Bounoua and Siham Matallah, “Corruption and Economic Growth: Empirical Evidence from Algeria,” International Journal of Innovation and Applied Studies, vol. 8, no. 3, pp. 927–946, September 2014.