The Institutional Quality and Economic Growth in Cameroon: An Application of the ARDL Approach
Keywords:
Institutions, growth, ARDL model, corruption.Abstract
This paper conducts an analysis of the effects of institutional quality on economic growth in Cameroon through an ARDL model. Using data from the World Bank over the period 1996-2019, we find that in the short run, the econometric estimates show that the corruption control variable positively affects economic growth. Specifically, a one point increase in the level of corruption leads to a 0.57% increase in the economic growth rate. However, it was found that in the long run, corruption has a negative effect on economic growth. The results corroborate the idea that corruption undermines economic performance in the long run. As an economic policy measure, efforts should be made to fight corruption.
References
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Acemoglu D., Simon J. and Robinson J. A. (2001), Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution, Cambridge MA, NBER working paper 8460.
Acemoglu, D. and Verdier, T. (1998), “Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach,” Economic Journal, 108, 450: pp.1381-1403.
Aghion P. and Howitt P. (1992), ‘’ A Model of Growth Through Creative Destruction.’’, Econometrica, vol. 60, pp. 323-51.
Aghion P. (2002), ‘’Les défis d’une nouvelle théorie de la croissance’’, L’Actualité économique, vol. 78, n°4, pp. 459-486.
Badry, H. (2016), Cointegration entre corruption et croissance économique à Travers Le canal de l’investissement: Evidence empirique moyennant l’approche ‘’ARDL Bound Testing’’ dans le cas de la Tunisie, European Scientific Journal, vol. 12, n° 16, pp. 424.
Commons J. R. (1936), “Institutional Economics”, The American Economic Review, vol. 26, n˚ 1, pp. 237-249.
Engle, R.F. and C.W.J. Granger (1987), “Cointegration and Error Correction: Representation, Estimation, and Testing,” Econometrica, 55, pp.251-276.
ETSIBA S, NDOMBI AVOUBA F. G., BOZONGO JC. (2018), Effets de la gouvernance institutionnelle sur la croissance économique: cas de la CEMAC, Annales de l’Université Marien N’GOUABI, vol. 18, n°1, pp. 138-148.
Frankel M. (1962), ‘’Obsolescence and Technological Change in a Mature Economy’’, American Economic Review, vol. 55, n° 3, pp. 296-319.
Goldsmith A.A. (1987), “Does Political Stability Hinder Economic Development? Mancur Olson's Theory and the Third World”, Comparative Politics, Vol. 19, n° 4, pp. 471-480.
Hall R.E. et Jones C.I. (1999), Why Do Some Countries Produce So Much More Output Per Worker Than Others? The Quarterly Journal of Economics, vol. 114, n° 1, pp. 83-116.
Kaufmann D. (1997). "Corruption: The Facts." Foreign Policy, n°107, pp.114-131.
Kibala Kuma J. (2018), Modélisation ARDL, Test de cointégration aux bornes et Approche de TodaYamamoto: éléments de théorie et pratiques sur logiciels, Congo-Kinshasa.
Knack F. and Keefer P. (1995), Institutions and Economic Performance: Cross- Country Tests Using Alternative Institutional Measures. Economics and Politics, vol. 7, n° 3, pp. 207-227.
Leff N.H. (1964). “Economic Development through Bureaucratic Corruption.” American Behavioral Scientist, vol. 8, n°3, pp. 8-14.
Mankiw N. G., D. Romer and D. N. Weil (1992), « A contribution to the Empirics of Economic Growth Quarterly », Journal of Economics.
Mauro P. (1995), Corruption and Growth, The Quarterly Journal of Economics, pp. 695– 712.
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Monte, Alfredo Del and Erasmo Papagni. (2001) “Public Expenditure, Corruption, and Economic Growth: The Case of Italy.” European Journal of Political Economy, vol. 17, n°1, pp. 1-16.
Murphy, Kevin M., Shleifer A., et Vishny R.W. (1993). "Why is Rent-Seeking So Costly to Growth?" American Economic Review. Vol.83, n°2, pp. 409-414.
NGUEGANG F. NEMBOT NDEFFO L. NDJIEUNDE G. (2019), L’effet de l’investissement direct étranger sur la croissance économique en Afrique subsaharienne: le rôle des institutions, Région et Développement n° 50.
North D. C. (1990), Institutions, Institutional Change, and Economic Performance, Cambridge, Cambridge University Press.
North D. C. (1993), New Institutional Economics and Development, Washington University Woking Paper, Washington Univesity, St. Louis.
Pesaran, M.H., Shin, Y. and R.J. Smith (2001), “Bounds Testing Approaches to the Analysis of Level Relationships”, Journal of Applied Econometrics ,16, pp. 289-326.
ROMER, PAUL M. (1986), « Increasing returns and Long Run Growth », Journal of Political Economy, 94 (5) : 1 002-1 037.
ROMER, PAUL M. (1990), « Endogenous Technological Change », Journal of Political Economy, 98(5) : 71-102.
SEGERSTROM, PAUL, T. ANANT et ELIAS DINOPOULOS (1990), « A Schumpeterian Model of the Product Life Cycle », American Economic Review, 80 : 1 0771 092.
SHLEIFER, ANDREI et ROBERT VISHNY (1999), The Grabbing Hand, Harvard University Press.
SOLOW R. (1956), « A Contribution to the Theory of Economic Growth », Quarterly Journal of Economics: pp. 65-94.
STIGLITZ, JOSEPH (1995), Wither Socialism, MIT Press.
SWAN T.W. (1956), « Economic Growth and Capital Accumulation », Economic Record, vol. 32, pp. 34-361.
VEBLEN T. (1898), “The Instinct of Workmanship and the Irksomeness of Labor”, American journal of Sociology, vol. 4, n°2, pp. 187-201.
Williamson O. E. (1994), “The Economic Institutions of Capitalism”, Paris, Inter-éditions.
Williamson O. E. (2000), “The New Institutional Economics: Taking Stock, looking ahead”, Journal of Economic Literature, vol.38, n°3, p. 595-613.
Williamson O. E. (2000), « The New Institutional Economics », Journal of Economic Literature, vol. 38, n°3, pp.595-613.
Woo J. and Kumar M.S (2015), « Public Debt and Growth », Economica, vol. 82, pp. 705–739.
Acemoglu D., Simon J. and Robinson J. A. (2001), Reversal of Fortune: Geography and Institutions in the Making of the Modern World Income Distribution, Cambridge MA, NBER working paper 8460.
Acemoglu, D. and Verdier, T. (1998), “Property Rights, Corruption and the Allocation of Talent: A General Equilibrium Approach,” Economic Journal, 108, 450: pp.1381-1403.
Aghion P. and Howitt P. (1992), ‘’ A Model of Growth Through Creative Destruction.’’, Econometrica, vol. 60, pp. 323-51.
Aghion P. (2002), ‘’Les défis d’une nouvelle théorie de la croissance’’, L’Actualité économique, vol. 78, n°4, pp. 459-486.
Badry, H. (2016), Cointegration entre corruption et croissance économique à Travers Le canal de l’investissement: Evidence empirique moyennant l’approche ‘’ARDL Bound Testing’’ dans le cas de la Tunisie, European Scientific Journal, vol. 12, n° 16, pp. 424.
Commons J. R. (1936), “Institutional Economics”, The American Economic Review, vol. 26, n˚ 1, pp. 237-249.
Engle, R.F. and C.W.J. Granger (1987), “Cointegration and Error Correction: Representation, Estimation, and Testing,” Econometrica, 55, pp.251-276.
ETSIBA S, NDOMBI AVOUBA F. G., BOZONGO JC. (2018), Effets de la gouvernance institutionnelle sur la croissance économique: cas de la CEMAC, Annales de l’Université Marien N’GOUABI, vol. 18, n°1, pp. 138-148.
Frankel M. (1962), ‘’Obsolescence and Technological Change in a Mature Economy’’, American Economic Review, vol. 55, n° 3, pp. 296-319.
Goldsmith A.A. (1987), “Does Political Stability Hinder Economic Development? Mancur Olson's Theory and the Third World”, Comparative Politics, Vol. 19, n° 4, pp. 471-480.
Hall R.E. et Jones C.I. (1999), Why Do Some Countries Produce So Much More Output Per Worker Than Others? The Quarterly Journal of Economics, vol. 114, n° 1, pp. 83-116.
Kaufmann D. (1997). "Corruption: The Facts." Foreign Policy, n°107, pp.114-131.
Kibala Kuma J. (2018), Modélisation ARDL, Test de cointégration aux bornes et Approche de TodaYamamoto: éléments de théorie et pratiques sur logiciels, Congo-Kinshasa.
Knack F. and Keefer P. (1995), Institutions and Economic Performance: Cross- Country Tests Using Alternative Institutional Measures. Economics and Politics, vol. 7, n° 3, pp. 207-227.
Leff N.H. (1964). “Economic Development through Bureaucratic Corruption.” American Behavioral Scientist, vol. 8, n°3, pp. 8-14.
Mankiw N. G., D. Romer and D. N. Weil (1992), « A contribution to the Empirics of Economic Growth Quarterly », Journal of Economics.
Mauro P. (1995), Corruption and Growth, The Quarterly Journal of Economics, pp. 695– 712.
Méon P. G. et K. Sekkat (2004). "Does corruption grease or sand the wheels of growth?" Public Choice, vol.122, n° 1, pp. 69-97.
Monte, Alfredo Del and Erasmo Papagni. (2001) “Public Expenditure, Corruption, and Economic Growth: The Case of Italy.” European Journal of Political Economy, vol. 17, n°1, pp. 1-16.
Murphy, Kevin M., Shleifer A., et Vishny R.W. (1993). "Why is Rent-Seeking So Costly to Growth?" American Economic Review. Vol.83, n°2, pp. 409-414.
NGUEGANG F. NEMBOT NDEFFO L. NDJIEUNDE G. (2019), L’effet de l’investissement direct étranger sur la croissance économique en Afrique subsaharienne: le rôle des institutions, Région et Développement n° 50.
North D. C. (1990), Institutions, Institutional Change, and Economic Performance, Cambridge, Cambridge University Press.
North D. C. (1993), New Institutional Economics and Development, Washington University Woking Paper, Washington Univesity, St. Louis.
Pesaran, M.H., Shin, Y. and R.J. Smith (2001), “Bounds Testing Approaches to the Analysis of Level Relationships”, Journal of Applied Econometrics ,16, pp. 289-326.
ROMER, PAUL M. (1986), « Increasing returns and Long Run Growth », Journal of Political Economy, 94 (5) : 1 002-1 037.
ROMER, PAUL M. (1990), « Endogenous Technological Change », Journal of Political Economy, 98(5) : 71-102.
SEGERSTROM, PAUL, T. ANANT et ELIAS DINOPOULOS (1990), « A Schumpeterian Model of the Product Life Cycle », American Economic Review, 80 : 1 0771 092.
SHLEIFER, ANDREI et ROBERT VISHNY (1999), The Grabbing Hand, Harvard University Press.
SOLOW R. (1956), « A Contribution to the Theory of Economic Growth », Quarterly Journal of Economics: pp. 65-94.
STIGLITZ, JOSEPH (1995), Wither Socialism, MIT Press.
SWAN T.W. (1956), « Economic Growth and Capital Accumulation », Economic Record, vol. 32, pp. 34-361.
VEBLEN T. (1898), “The Instinct of Workmanship and the Irksomeness of Labor”, American journal of Sociology, vol. 4, n°2, pp. 187-201.
Williamson O. E. (1994), “The Economic Institutions of Capitalism”, Paris, Inter-éditions.
Williamson O. E. (2000), “The New Institutional Economics: Taking Stock, looking ahead”, Journal of Economic Literature, vol.38, n°3, p. 595-613.
Williamson O. E. (2000), « The New Institutional Economics », Journal of Economic Literature, vol. 38, n°3, pp.595-613.
Woo J. and Kumar M.S (2015), « Public Debt and Growth », Economica, vol. 82, pp. 705–739.
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2022-05-31
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SALI, A. M. (2022). The Institutional Quality and Economic Growth in Cameroon: An Application of the ARDL Approach: Array. EuroEconomica, 41(1). Retrieved from https://dj.univ-danubius.ro/index.php/EE/article/view/1461
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