The Impact of Financial Corruption on Economic Performance

Ade S. Nimri

Published: June 2022

This study aims to evaluate the impact of financial corruption on economic performance in Jordan using time series data over the period 1990–2020. It used the dynamic least squares (DOLS) estimation method to examine the impact between the variables using the Corruption Perception Index (CPI) and Corruption Rank (CR) to measure financial corruption in Jordan. The results confirm that the CPI has a positive impact on economic growth, the Human Development Index, trade openness, population growth and foreign direct investment, while CR has a negative impact on economic growth, foreign direct investment, and trade openness and a positive impact on the Human Development Index and population growth. Finally, the study provides recommendations that refer to the importance of fighting corruption, especially in developing countries.

Download Paper in PDF format