@article{Hassaballa_2017, title={Studying the Effect of Corruption on Income Per-capita Level in an IV Estimation in Developing countries}, volume={6}, url={https://ecsdev.org/ojs/index.php/ejsd/article/view/438}, DOI={10.14207/ejsd.2017.v6n1p57}, abstractNote={<p class="03ABSTRACT">Income per-capita is a measure of economic well-being. Through its effect on economic development, it can indirectly affect sustainable development. Hence, it is essential to study the determinants of Income per-capita Level. Recently, corruption level has played an influential role in determining income per-capita.  However, theoretically and empirically its effect is still debatable. Besides the traditional determinants of income per-capita, the effect of corruption on Income per-capita level is examined in a sample of developing countries between1996-2013. There is a potential endogeneity problem that arises from the two way relationship between corruption and income per capita levels which threatens internal validity. Accordingly, an instrumental variable (IV) in a two stage least squares (2SLS) estimation is conducted. The results indicate its presence. Furthermore, the results show that corruption is a significant determinant of income per-capita level in developing countries. Policy implications to promote governance which in turn affect sustainable development are also given.</p><p><em> </em></p><p class="04KEYWORD"><em>Keywords: Income per-capita, corruption, IV estimation and developing countries.</em></p><p class="04KEYWORD"><em>JEL: H8, O1</em></p><p><em> </em></p>}, number={1}, journal={European Journal of Sustainable Development}, author={Hassaballa, Hoda}, year={2017}, month={Jan.}, pages={57} }