Title:
THE IMPACT OF CORRUPTION ON ECONOMIC GROWTH IN GHANA

Authors:
David Mensah Awadzie, David Kwashie Garr, Ghana

Abstract:

This paper aims to find out how corruption affects economic growth statistically in Ghana. The research used secondary time series data from 1998 to 2020 for a total of twenty-two years. The study used gross domestic product (GDP) per capita as a measure of economic growth. The Corruption index and total government expenditure were used as explanatory variables in the analysis. The data was checked for stationarity using the unit root test and the Augmented Dickey-Fuller (ADF) test was applied. To assess the effect of corruption on economic growth, multiple regression analysis was used. The study revealed that corruption has an insignificant negative impact on economic growth in Ghana. This finding implies that the economy would be unable to grow rapidly if corruption is not curtailed in Ghana. The research suggests that policies that promote sustainable development should be facilitated to improve the level of economic growth by reducing corruption and poverty. Lastly, the study further suggests that political will is needed to root out corrupt government appointees.