Economic Corruption and its Impact on Achieving the Sustainable Development Goals (SDGs) in Libya
DOI:
https://doi.org/10.59992/IJFAES.2025.v4n2p9Keywords:
Economic Corruption, Sustainable Development Goals, Libya, ARDL ModelAbstract
This paper investigates the relationship between economic corruption and the achievement of Sustainable Development Goals (SDGs) in Libya. Utilizing time-series data from 1990 to 2019 and employing an Autoregressive Distributed Lag (ARDL) model, the paper assesses the impact of economic corruption, measured by the International Country Risk Guide (ICRG) index, on the Sustainable Development Index (SDI). The findings reveal a significant negative correlation between economic corruption and sustainable development. The paper further examines the roles of economic growth, human capital, inflation, and unemployment as key determinants influencing sustainable development outcomes. The results emphasize the need for comprehensive strategies to combat corruption, promote good governance, and foster inclusive economic development to accelerate progress toward the SDGs in Libya.
References
- Acemoglu, D., & Robinson, J. A. (2012). Why nations fail: The origins of power, prosperity, and poverty. Crown Business.
- Ades, A., & Di Tella, R. (1999). Rents, competition, and corruption. American Economic Review, 89(4), 982-993.
- Bardhan, P. (1997). Corruption and development: A review of issues. Journal of Economic Literature, 35(3), 1320-1346.
- Chhibber, A., Elfirdoussi, I., & Henzel, D. (2023). Rebuilding state capacity in fragile states: Lessons from Libya and Tunisia. World Bank Publications.
- Elboiashi, H. (2024). The Impact of Political Stability on Economic Growth in Libya. International Journal of Economic Studies, Research Study, 28(6), 171-185.
- El-Gamaty, F. (2016). Corruption and the resource curse in Libya. Routledge.
- El-Gharabli, A. (2014). The impact of administrative and financial corruption on economic performance in Libya. Journal of Business and Management, 1(2), 123-137.
- European Union External Action. (2024). EU support to Libya. [https://www.eeas.europa.eu/eeas/eu-support-libya_en]
- Gupta, S., Davoodi, H., & Alonso-Terme, R. (2002). Does corruption affect income inequality and poverty? Economics of Governance, 3(1), 23-45. https://doi.org/10.1007/s101010100039
- Hickel, J. (2020). “The Sustainable Development Index: Measuring the Ecological Efficiency of Human Development in the Anthropocene,” Ecological Economics vol 167 [PDF]. Data management, data visualization and program coding by Huzaifa Zoomkawala.
- IOM (International Organization for Migration). (2023). Libya migration data. [https://www.iom.int/countries/libya]
- Jones, P. (2015). Corruption and economic development. In The Oxford Handbook of the Economics of Poverty (pp. 1-26). Oxford University Press.
- Karl, T. L. (1997). The paradox of plenty: Oil booms and petro-states. University of California Press.
- Khaled Alhmoud; Luan Zhao; Zied Ouelhazi; Natsuko Obayashi; Mohamed Habib Zitouna. (2024). The Economic Report for Libya: Strengthening Economic Stability and Increasing Productivity (in Arabic). Washington, D.C.: World Bank Group. http://documents.worldbank.org/curated/en/099159112122441635
- Lacher, W. (2020). Libya’s fragmentation: Structure and process in violent conflict. I.B. Tauris.
- Mauro, P. (1995). Corruption and growth. The Quarterly Journal of Economics, 110(3), 681-712.
- Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of applied econometrics, 16(3), P289-326.
- Rose-Ackerman, S. (1999). Corruption and government: Causes, consequences, and reform. Cambridge University Press.
- Sachs, J. D. (2012). The age of sustainable development. Columbia University Press.
- Shleifer, A., & Vishny, R. W. (1993). Corruption. The Quarterly Journal of Economics, 108(3), 599-617.
- Søreide, T. (2002). Corruption in public procurement: Causes, consequences and cures. World Bank Institute Working Paper.
- Tanzi, V., & Davoodi, H. (1997). Corruption, public investment, and growth. IMF Working Paper, 97/139.
- Transparency International. (2023). Corruption Index.
[https://www.transparency.org/en/cpi/2023]
- UN Security Council. (2024). Report of the Panel of Experts on Libya. S/2024/983. (https://documents.un.org/doc/undoc/gen/n24/381/92/pdf/n2438192.pdf).
- UNDP (United Nations Development Programme). (2016). Arab Human Development Report 2016: Youth and the Prospects for Human Development in a Changing Reality.
- UNDP (United Nations Development Programme). (2022). Libyan Human Development Report. [https://www.undp.org/libya/publications/libyas-human-development-summary-2023-2024]
- UNODC (United Nations Office on Drugs and Crime). (2023). GRACE initiative. [https://www.unodc.org/unodc/en/corruption/grace.html]
- World Bank. (2022). "Development Report for the Middle East and North Africa." Washington.
- World Bank. (2023). Governance and anti-corruption.
