The effect of corruption on seigniorage : applying on a sample of oil and non-oil countries

Abstract EN

Corruption causes a shift in the composition of public finances toward seigniorage and, as a result, lowers growth.

Corruption manifests itself in the embezzlement of public funds, increasing the government's dependence on seigniorage financing.

This results in a rise in inflation, which decreases capital accumulation and growth.

This study aims to diagnose the effect that corruption can have on influencing the Seigniorage in four non-oil Arabic countries (Jordan, Tunisia, Egypt, Morocco), and adopted the Balanced Panel Data methodology for each of the two groups and for the period (2002-2015) as a model to prove this.

The results of the estimate revealed that corruption has not been able to demonstrate its moral impact on the return on cash issuance for both groups of countries.