Inter-dynamics between corruption, government effectiveness, and economic growth: A case study for West Africa

The data surveys conducted by Afrobarometer and Transparency International Corruption Perception Index indicate that the level of corruption and government underperformance in West Africa has reached extremely concerning levels. The study aimed to investigate the complex relationship between corruption, government effectiveness, and GDP growth trends across sixteen West African Nations from 2003- 2021 utilizing panel data analysis. The study employed a unique technique using the causality results to form the model's functional and regression form. Upon these results, the study utilized a dynamic panel-data estimation, a two-step system Generalized Methods of Moments by Arellano and Bond. This method effectively addresses potential issues such as sample size, autocorrelation, heterogeneity, and endogeneity and is asymptotically more potent than the regular one-step GMM. Using this method, it was found that a negative relationship exists between corruption and GDP growth in the region. Also, a significant negative relationship exists between government effectiveness and corruption. The findings also showed that the relationship between GDP growth and government effectiveness within the region is positive and significant. These results support the "Sand in the Wheels Hypothesis". Therefore, the study recommends urgent structural change within the administration to ensure effective and quality institutional structure, focus on building effective anti corruption agencies to fight against systematic corruption within the governing body and ensure accountability, and establish development strategies tailored to contemporary contexts rather than outdated colonial-era systems. Keywords: Corruption, Dynamics, Effectiveness, GMM, Governance, Growth.