THE ALGERIAN ECONOMY GOVERNED BY BLACK CORRUPTION: AN EMPIRICAL STUDY FROM 2002 TO 2015

Abstract

The main objective of this paper is to highlight the concept of corruption and analyses our cumulative knowledge about corruption’s effects on the economic growth in Algeria during the period 2002–2015. This article emphasizes the major source of corruption and how the quality of institutions and government policies could mitigate the risk of corruption or increase it. The findings also show the great role of free media in most developing countries which created a new tendency to talk about the effects of corruption especially in recent years. Using a multiple regression model, we find that a 1% decrease in the corruption index CPI level increases the GDP growth rate by approximately 2,005%. The analysis also revealed that there is a negative relationship between the country rank and the economic growth. Finally, the results suggest that more economic freedom, social and political stability lead to less corruption.