The Impact Of Corruption On The Economic Growth Of The Arab Countries During The Period 2012-2021

Abstract

This study aims to investigate the impact between corruption and growth in Arab countries by controlling the various variables that affect growth. The study focuses on whether corruption affects growth and the type of this effect. The applied study is based on data from nineteen 19 Arab countries during the period from 2012 to 2021. To achieve its objective, the study uses static panel models estimated using STATA version 15. Through the Hausman test, when choosing a random effect model (REM), it is found that corruption harms economic growth. The result confirms the hypothesis that corruption is Sand on the Wheels, as it is sand that hinders investment and thus slows down economic growth.