M.A RESEARCH RESULTS
PRESENTATION
Title: Macro and Micro Determinants
of Corruption in Sub-Saharan African
Countries
Name of Student: Simon Maeda
Supervisor: Benedict Kazuzuru
Outline
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Background Information
Problem Statement
Research Justification
Objectives of the Research
Research Hypothesis
Conceptual Framework
Research Methodology
Results and Discussion
Conclusion and Recommendations
Background information
• Corruption is omnipresent; it exists in all countries,
both developed and developing. In sub-Saharan
African countries corruption is really
• In Tanzania corruption cases include that of Radar
Scandal 1999, EPA, Kiwira and other mining related
scandals in 2000 which resulted to a huge loss of
public funds (NORAD, 2011).
Background cont….
• Corruption reduces economic growth.
• There has been debate on the causes and effects of
corruption, a host of researchers believe that
corruption mitigates economic development by
creating inefficiencies that reduce domestic and
foreign direct investment, (Khan, 2012).
• But Bardhan, (1997), report that it may have positive
effects on FDI inflows speeding up the process of
decision making.
Problem statement
• The problem of corruption in Sub-Saharan African
countries is evident. Some governments have
established various preventive and reactive
strategies to combat the corruption such as PCCB in
Tanzania, EACC in Kenya. Despite the prevailing
strategies to fight corruption, phenomena is still
rampant (Robert, 2012).
• Given the said scenario where governments have
failed to eradicate corruption, there is a need of
approaching the problem from another dimension,
especially considering its link with some social
economic factors.
Problem statement
• Such a link would provide opportunity for
governments not to necessary approach the
problem through law enforcements, but through
altering the social economic factors which may
lead to reduction of corruption.
Research Justification
• The information generated is helpful to development
workers, planners and policy makers, academicians,
researchers as well as various Ant-Corruption
stakeholders where it provide worth information for
appropriate interventions for preventing and ending
corruption Sub-Saharan African countries.
Research Justification
• Therefore this research is in line with programs of
East African Association of Anti Corruption
Authorities of 1999. United Nations Convention
Against Corruption (UNCAC) program in provision of
Technical Assistance and Information Exchange
(Chapter VI, Articles 60-62).
Objectives of the Study
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General Objective
To analyze Macro and Micro determinants of corruption
Specific objectives
To analyse the relationship between corruption and GDP
To analyse the relationship between of corruption and
Inflation
To analyse the relationship between of corruption and
Trade openness
To analyse the relationship between of corruption and FDIs
To analyse the relationship between of corruption and
Income distribution
To examine individual socioeconomic backgrounds that
lead one to engage in corruption
Study Hypotheses
 Hypothesis 1
• H0: There is no significant relationship between a
country’s economic growth rate, FDI, Trade Openness,
Inflation, GNI and the level of corruption.
• H1: There is a significant relationship between a
country’s economic growth rate, FDI, Trade Openness,
Inflation, GNI and the level of corruption
 Hypothesis 2
• H0: There is no significant relationship between one’s
desire to be corrupt and one’s socio economic
background
• H1: There is a significant relationship between one’s
desire to be corrupt and one’s socio economic
background
Conceptual Framework
Methodology
 At Macro level
• Panel data design was employed with 26 countries and ()
years.
• A purposive sampling was employed to select countries with
available records of macro economic data
• Data were collected through secondary sources( T.I, UNCTAD,
WB AND IMF).
• Panel data regression was used with a country’s Corruption
Perception Index(CPI) as a response variable .
• The CPI’s are measured in a continuous scale and have been
used in several empirical studies such as ……
 At Micro level
• A cross sectional design was used in primary data collection.
• Stratified sampling techniques was employed to select a
sample of 200 respondents for primary data.
• Data were collected through questionnaire survey
• Binary regression was employed
Methodology
• The response variable was “1” if an individual
indicated willingness to be corrupt and “0” if
an individual has not indicated willingness to
be corrupt.
• The eagerness to corruption was based on
whether an individual has a score of 15 or
above out of 30 questions asked on one’s
willingness to be corrupt.
Methodology
 Prior expected signs between the dependent variable and the
independent variables
• CPI versus the independent variables
Research Findings and Discussion
 Macro determinants of corruption
• Table 4 shows that an Increase in GDP growth rate,
FDI’s and Trade Openness have a positive and
significant positive increase in a country’s CPI’s which
implies a reduction in a country's corruption level.
• Table 4 revealed that there is expected (positive) sign
between GDP, Inflation and GNI per capita against
CPI, which tends to suggest that an increase in any of
those variables could lead to more corruption
Table 4
Micro determinants of corruption
 Table 13,
show that individual literacy level,
individual satisfaction with salary and Household size
have a significant and positive influence in one
likeliness to be corrupt. This could be interpreted as
follows:
• Poor salary and big household sizes hardens peoples'
life hence motivating them to be corrupt
• Higher education level creates one’s desire to live a
good life which is so far not realized and thus
motivating them to be corrupt.
Table 13: A binary logistic regression results for
Micro determinants of corruption
Conclusion and Policy implications
 Conclusion
 The Macro determinants observed were Growth
rate, FDIs, Trade openness.
• The CPI score (higher CPI: Less corruption) was found
to be increasing due to increase in GDP, Growth rate,
Trade openness and FDI.
 At Micro level observed individual determinants
were literacy level and Households size and unsatisfaction with salary.
• The individual desire to be corrupt was found to be
positively related with literacy level, Households size
and un-satisfaction with salary
Conclusion and Recommendations cont....
• Policy implications
• Reform that increases the competitiveness of the economy, to
curb the corruption phenomenon.
• Improving the country’s economy
• Attracting more and more FDI’S
• Transparency and accountability in public expenditure.
• Family control need to be emphasized.
• Salaries increase which could make civil and private servants
capable to meet their daily needs
• Increase efforts to train entrepreneurship skills to reduce civil
servants overdependence on salaries.
Conclusion and Policy Implications
• Anti-Corruption and Related Watchdogs
• Further studies to determine political and
socio factors influencing corruption at Macro
level.
• Trainings on corruption issues to the society.
• Individuals
• Sense of nationalism and morals among the
individuals both public and private goods.
End of presentation
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