Corruption, Economic Growth, and Non-performing Loans in Sub-Saharan Africa: An Empirical Analysis (2011–2019)

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F62156489%3A43110%2F25%3A43925932" target="_blank" >RIV/62156489:43110/25:43925932 - isvavai.cz</a>

Result on the web

<a href="https://doi.org/10.1007/s40953-024-00420-y" target="_blank" >https://doi.org/10.1007/s40953-024-00420-y</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1007/s40953-024-00420-y" target="_blank" >10.1007/s40953-024-00420-y</a>

Result language

angličtina

Original language name

Corruption, Economic Growth, and Non-performing Loans in Sub-Saharan Africa: An Empirical Analysis (2011–2019)

Original language description

This study explores the impact of corruption and economic growth on non-performing loans (NPLs) in Sub-Saharan Africa (SSA) after the global financial crisis. We use the Arellano-Bond Generalized Method of Moments dynamic panel estimation procedure on 493 banks from 31 Sub-Saharan African countries from 2011 to 2019. We find that corruption and economic growth have significantly positively and negatively influenced NPLs in SSA, respectively. We further investigate how corruption affects NPLs and observe that bank size and NPLs have a positive relationship. Simultaneously, well-capitalized banks and the effectiveness of the judicial system reduce the level of NPLs. The study&apos;s uniqueness lies in evaluating the impact of corruption on NPLs at the sub-regional level. The results reveal how corruption has not significantly affected Central and Southern African banks&apos; NPLs but vice versa in West and Eastern Africa. The study concludes that NPLs are a dead weight loss to society. The results confirm how anti-corruption campaigns, improvements in judicial regulation, and sustained economic growth can help mitigate non-performing loans. Furthermore, policy implications such as enhancing institutional quality and implementing growth-sustaining measures have been suggested.

Czech name

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Czech description

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Type

J_imp - Article in a specialist periodical, which is included in the Web of Science database

CEP classification

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OECD FORD branch

50202 - Applied Economics, Econometrics

Project

—

Continuities

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Publication year

2025

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of Quantitative Economics

ISSN

0971-1554

e-ISSN

2364-1045

Volume of the periodical

23

Issue of the periodical within the volume

1

Country of publishing house

US - UNITED STATES

Number of pages

19

Pages from-to

233-251

UT code for WoS article

001331786900001

EID of the result in the Scopus database

2-s2.0-105001499406