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

Kód výsledku v 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>

Výsledek na webu

<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>

Jazyk výsledku

angličtina

Název v původním jazyce

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

Popis výsledku v původním jazyce

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.

Název v anglickém jazyce

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

Popis výsledku anglicky

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.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

—

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2025

Kód důvěrnosti údajů

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

Název periodika

Journal of Quantitative Economics

ISSN

0971-1554

e-ISSN

2364-1045

Svazek periodika

23

Číslo periodika v rámci svazku

1

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

19

Strana od-do

233-251

Kód UT WoS článku

001331786900001

EID výsledku v databázi Scopus

2-s2.0-105001499406