The impact of institutions problems on economic growth-the case of arab economies

Abstract EN

This research aims to investigate the relationship between institutions and economic growth by modelling corruption as an institution in itself, rather than as some form of illicit behaviour and in a framework that takes into account that corruption also affects growth through its impact on institutions.

To achieve this purpose we used Panel data For the period 2007 to 2017 for ten Arabic countries.

That were obtained from the World Bank, International Organization of Transparency and Freedom House by using PANEL data and analyzed by stata 12 program.

The results show that there is a positive and significant relationship between corruption and economic growth in the countries under studie where We find that the overall effect of corruption on economic growth is highly dependent on the institutional setting of a country.

Particularly in situations where institutions are not well developed it may be conducive to economic growth.