Open AccessGovernment Size and Corruption: A Non-linear Analysis in the Case of EMCCA
Author(s) -
Assoumou Ondo,
Beau Jency Owono Ondo
Publication year - 2021
Publication title -
research in world economy
Language(s) - English
Resource type - Journals
eISSN - 1923-399X
pISSN - 1923-3981
DOI - 10.5430/rwe.v12n4p17
Subject(s) - language change , government (linguistics) , economics , panel data , linear relationship , econometrics , public economics , monetary economics , development economics , macroeconomics , statistics , mathematics , art , linguistics , philosophy , literature
This article analyzes the relationship between Government size and corruption. Unlike the works in the way which suppose a linear relationship between the two variables, we estimate a panel with change of the modes to characterize the impact of the size of the Central Government on corruption, in the countries of the economic community and monetary of Central Africa (EMCCA). The results show that there is a non-linear relationship between these two variables. Indeed, a strong involvement of the Government in economic activity results in a significant increase in corruption when the Government exceeds a size of 13.5508% of the GDP.