Institutional transformation as an effective tool for reducing corruption and enhancing economic growth: A panel study of West African countries

Abstract

Weak institutions and high levels of corruption are issues of great concern in West Africa because of their adverse effects on the economic growth of the region. While a significant portion of extant literature has focused on the determinants of corruption, empirical investigations of the effect of institutional quality on corruption are still limited, especially in Africa. This paper provides empirical evidence, which shows that improvement in the quality of governmental institutions is an effective means of controlling corruption in West Africa. Furthermore, the paper reveals that improvements in terms of the ability of governmental institutions to meet the economic needs of the people make the most impact on the ability to curb corruption in West Africa. Annual panel data series for14 ECOWAS countries on corruption control and governance quality, obtained from the Worldwide Governance Indicators and Ibrahim Index of African Governance online databases, for the period 2000–2015, were utilized in the study.