Is corruption the sander or grease to the wheel of economic growth in Africa? : An empirical analysis examining the relationship between corruption and economic growth in Africa

The purpose of this study is to find out in what magnitude corruption affects economic growth in Africa, based on 8 variables chosen; GDP per capita growth, Corruption Perception index, Capital, Education, Unemployment rate, Worldwide Governance Indicators. There is an ongoing fight against corruption world-wide. The most severe condition of corruption is centered in large parts of Africa based on data from Transparency International. For this reason, the scope is to research if the high level of corruption hasan impact on the economic growth and if so, how big of an impact it has on economic growth, based on factors implemented. A panel data analysis is conducted to econometrically estimate how corruption effects economic growth in Africa. Previous studies in this subject and literature that speak of corruption as “grease to the wheels” and “sands to the wheels” is the foundation for the study. Results show no significance when it comes to the relation between CPI and economic growth. Therefore, no conclusion can be made