Economies

Special Issue Editor

Special Issue Information

Dear Colleagues,

Two competing hypotheses link corruption and growth. The first, the "Sand in the Wheels" hypothesis, argues that corruption harms growth and institutional development. Under this hypothesis, corruption increases the cost of public investments, misallocates resources to rent-seeking activities, and discourages investment and firm growth. Moreover, under this hypothesis, corruption encourages elected and public officials to create burdensome rules and regulations which firms and individuals have to pay bribes to avoid.

The second hypothesis, the 'grease the wheels' hypothesis, argues that corruption has the opposite effect. In countries with weak institutions and limited resources, corruption arguably allows firms and individuals to escape burdensome bureaucratic procedures and regulations. This, in turn, allows for faster growth.

The goal of this Special Issue is to provide new insights into corruption, growth, and financial sector development. Theoretical and empirical papers on these topics are encouraged.

Submissions should consist of theoretical or applied research in a broad range of topics, including, but not limited to, the following:

The effect of corruption on economic growth and financial sector development;
The effect of corruption on firm performance and access to finance;
The identification of factors that moderate the effect of corruption on growth;
The interaction between regulation, institutions, and corruption;
The institutional determinants of corruption;
The links between financial sector development and growth;
The links between institutional development and financial sector development.

Dr. George R. G. Clarke
Guest Editor

Manuscript Submission Information

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Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Economies is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

corruption
economic growth
financial development
structural change
digital economies
fiscal policies

Published Papers (1 paper)

Research

19 pages, 469 KiB

Open AccessArticle

Empirical Analysis of the Effect of Institutional Governance Indicators on Climate Financing

by Moses Herbert Lubinga and Adrino Mazenda

Economies 2024, 12(2), 29; https://doi.org/10.3390/economies12020029 - 26 Jan 2024

Viewed by 1331

Abstract

Sustainable Development Goal 13 echoes the fact that all countries must make urgent and stringent efforts to mitigate against and adapt to climate change and its associated impacts. Climate financing is one of the key mechanisms used to enable countries to remain resilient to the hastening effects of climate change. In this paper, we empirically assess the effect of institutional governance indicators on the amount of climate finance received by 21 nations for which progress towards the internationally agreed-upon target of reducing global warming to 1.5 °C is tracked. We use the fixed-effects ordinary least squares (OLS) and the feasible generalized least squares (FGLS) estimators, drawing on the Climate Action Tracker panel data from 2002 to 2020. Empirical results reveal that perceived political stability significantly enhanced climate finance inflows among countries that strongly increased their NDC targets, while perceived deterioration in corruption control negatively impacted the amount of climate finance received by the same group of countries. Therefore, governments should reduce corruption tendencies while striving to avoid practices and alliances that lead to any form of violence, including terrorism and civil war. Low developing countries (LDCs) in particular need to improve the standard of public services provided to the populace while maintaining a respectable level of autonomy from political influences. Above all, as countries work towards strengthening institutional governance, there is an urgent need for developed economies to assist developing economies in overcoming debt stress since the likelihood of future resilience and prosperity is being undermined by the debt crisis, with developing countries spending almost five times as much annually on repayment of debt as they allocate to climate adaptation. Full article

(This article belongs to the Special Issue Economic Growth, Corruption, and Financial Development)

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