Application of Inverted ‘U’ Hypothesis on Democratization and Level of Corruption in Sub-Saharan Africa

Abstract

This study try to determine the effect of inverted ‘U’ hypothesis on the level of corruption in Sub Sahara Africa. The period under review was 1995-2016, using panel data, the Dynamic Two-Step System, Generalised Method of Moment (GMM) was applied to determine the impact of the explanatory variables on the dependent variable. From the results, the coefficient of duration of democracy and transparency were significant while those of other variables were insignificant in affecting the level of corruption. This study also reveals that oil producing nations are less corrupt than non-oil producing nations. It was recommended that democratic system should be consolidated and strengthened through improving and standardizing the democratic process by adopting modern electoral gadgets as this will encourage the conduct of a free and fair elections and indeed lead to the presence of inverted ‘U’ effect in the region. Also, other institutions upon which democratization depends such as judicial system, financial and other related agencies and so on should be made to function effectively as these will help to promote and sustain quality democratic system and as a result, curb corruption and further enable the existence of inverted ‘U’ effect in the region.