Kingsley Nwala
Elizabeth City State University, Elizabeth City, North Carolina
Ebere Oriaku
Elizabeth City State University, Elizabeth City, North Carolina
Alex Ogwu
Elizabeth City State University, Elizabeth City, North Carolina
Abstract
The paper empirically investigates the causation directionality between Corruption and Income Inequality using 10 selected African countries namely: Angola, Republic of Benin, Burkina Faso, Cameroon, Ghana, Kenya, Nigeria, Senegal, Togo, and Zambia. The study uses annual panel data covering 1995-2006, and employs Dickey-Fuller and Phillips- Hansen’s fully modified OLS and Granger causality tests. The results show a negative correlation between Corruption and Income Inequality. The OLS results on the other hand show Income Inequality to cause Corruption and Corruption to cause Income Inequality. The Granger causality test indicates no directional causation between Corruption and Income Inequality and Income Inequality and Corruption.
Keywords: Corruption, Income Inequality, Economic Growth
JEL Classification Codes: D31, D73, O57
