Corruption in egypt

The views expressed are their own. Upon taking office, President Mohamed Morsy vowed to eliminate corruption in Egypt.

Corruption in egypt

The model provides a simple theoretical framework in which the level of corruption as well as the effects of corruption on output variables; forging direct investments, government expenditure, openness and political instability are identified.

Our main result provides empirical evidence suggesting that corruption increases inefficiencies in government expenditure and reduces investment and human capital, leading to a negative impact on output.

In addition, the human capital, openness and political instability are the most important channel variables, through which corruption is likely to reduce growth. Corruption, Development, Governance, Economic Growth 1. Introduction Over the past years, the question of the economic consequences of corruption on economic growth has long been a subject of analysis and debate.

The analysis and debate are essentially focused on the effect of corruption on economic growth. In previous literature, several studies have generally found Corruption in egypt negative relation between corruption on one hand and investment and growth on the other hand [1] - [3].

Currently, different organizations view corruption as a major obstacle to good policy making [4]. Other papers claim that if corruption is likely to affect economic growth, its effect would be transmitted Corruption in egypt via its impacts on the standard determinants of economic growth.

This fact was reinforced by the results of a number of studies that explicitly argued that the total effect of corruption on economic growth could be decomposed into a direct impact and a set of indirect effects manifested by a number of transmission variables [5] - [7].

Corruption can affect economy on different ways, and it is important to understand the range and diversity of the mechanisms involved. There is a wide consensus among economists that corruption distorts relative prices, discourages savings and investment, and hinders economic growth and development [8] [9].

Despite a considerable number of theoretical and empirical studies, there is still no agreement on the different ways in which corruption might affect economic growth.

The diversion of talent from productive to rent-seeking activities i.

Corruption in egypt

On the other hand, some studies claim that corruption in an economy acts like a grabbing hand that increases the costs of carrying out business activities and therefore increase the costs of foreign investments and will, therefore, discourage FDI for both developed and developing countries [11] - [17].

Others argued that corruption might lead to a general misallocation of public expenditures as certain areas of spending military spending were targeted more for their capacity to generate bribes than their potential to improve living standards [20] [21].

Furthermore, other authors including [22] [23] have provided similar evidence and reported that the relationship between corruption and economic growth became statistically insignificant after controlling for other important determinants of growth, such as investments, human capital, openness and political instability.

The main conclusion that can be derived from the above studies is that the relation between corruption and economic growth is empirically very ambiguous.

Some studies find a significant negative effect of corruption on growth; others show that the effect is statistically insignificant, while others show the effect to be heterogeneous across countries with different institutional frameworks. This means that corruption is deleterious for economic growth but the exact channels through which it affects economic growth are not resolved empirically.

Based on the main propositions of previous literature, we develop a new analytical framework to investigate the relation between corruption and economic growth in Egypt and also highlight the mechanisms through which corruption could affect growth. The channels under consideration include foreign direct investment, government expenditure, human capital, openness, and political instability.

To our knowledge, there were few earlier studies examined the effect of corruption on economic growth in Egypt. None of these papers used any econometric analysis to evaluate the effect of corruption on the economic growth either in direct or indirect way. The main objective of this paper, therefore, is to analyze and estimate the effect of corruption on economic growth by performing an econometric analysis with reference to the Egyptian economy.

The paper emphasises three questions: First, does corruption affect economic growth in Egypt? Second, is there evidence of a negative correlation between corruption and economic growth? And third, what are the main channels through which corruption affects economic growth?

In order to answer previous questions, this study quantifies both direct and indirect effect of corruption on economic growth and also augments the prior literature by three ways: Second, Unit Root Test is used to test the order of integration of the variables in the presence of structural breaks.

Finally, the GMM estimation approach is also applied to detect the direct and indirect relation between corruption and economic growth. The remainder of this study is presented as follows. Section 2 presents the basic model, the data, and variables.

Section 3 presents the results. Section 4 offers some concluding remarks. Basic Model In our framework for investigating the growth mechanism, imagine an economy that produces only one good and the population is constant, for simplicity normalized in size to one.

Output is produced with a well-behaved neoclassical production function with positive and strictly diminishing marginal product of physical capital. We assume output depends upon the capital stock and human capital awhich are paid their marginal products.

The production function is:Jun 14,  · Corruption in Ancient Egypt. Dr. Osama Koriech M.B., DMRT.

Hosni Mubarak to be jailed for corruption | World news | The Guardian

FRCR Retired Clinical Oncologist —— Corruption is the abuse of entrusted power for private gain by government employees, public officials or citizens seeking services. Anyone who violated the law in any way, anyone who plundered Egypt in any way, anyone who spread corruption in Egypt over the last three decades should be punished.

Egypt, a lower middle-income country, is eligible for financial support from the IBRD, IFC, and MIGA. Developed at a critical juncture in Egypt’s history and in a regional context marked by volatility, fragility, and conflict, the –19 framework focuses on fighting poverty and inequality.

Egypt has passed through a rough time during the revolution period. In fact, I even believe that the country became more corrupt and chaotic. A lot of institutions have been destroyed and burnt to the ground, the Egyptian museum had been looted and many objects were stolen, and protesters had attacked the police stations and stormed many prisons.

And The Biblical Corruption Factor. The Corruption Of The Bible Was Necessary.

Corruption in egypt

And Was Ordained By The Hand of God. If readers of Egyptian dailies pay close attention to the sources of the published news, they would notice that the most important reports are either attributed to the security institution or to.

Corruption costs Cairo $1 billion over past 3 years