CORRUPTION, INSTITUTIONS AND ECONOMIC GROWTH IN SUB-

Corruption is a important trouble and social ethics has a remarkable impact on all countries. It is a fact which exists in many countries and a trouble for the economy. Economists and various researchers in recent years have shown an increasing interest in studying the phenomenon of corruption and its impact on economic growth. This study aims to investigate the causal relationship among corruption, economic freedom and economic growth in some selected Sub-Saharan African (SSA) countries with a view to making policy implications using the Granger causality test within a multivariate cointegration and error-correction framework for the 1996-2014 period. The findings indicate that economic freedom Granger-causes economic growth in the short term, while economic freedom and economic growth Granger-cause corruption in the long term. Furthermore, we employed the forecast error variance decomposition and impulse response function analyses to investigate the dynamic interaction between the variables. The results demonstrate positive unidirectional Granger causality from economic freedom to economic growth in the short term and positive unidirectional Granger causality from economic freedom and economic growth to corruption in the long term in SSA countries.