Corruption, nonperforming loans, and economic growth: International evidence

Figures & data

Table 1. Descriptive statistics

Variable	Obs	Mean	Std. dev.	Min	Max
NPLR	1,363	6.183	6.697	0.100	54.541
CCI	1,881	0.128	1.042	−1.720	2.470
HHC	1,828	60.587	15.257	12.775	107.732
GOV	1,828	15.605	4.837	0.952	30.003
EFFICIENCY	1,247	6.716	6.691	0.025	69.943
PROFITABILITY	1,766	1.541	1.902	−24.117	15.054
CAP	886	9.313	3.277	0.000	23.011
LIQ	1,310	19.254	15.939	0.205	115.719
RGDP	1,887	3.961	5.172	−62.076	123.140
POPG	1,897	1.397	1.707	−4.537	17.511
FIXED	1,856	24.285	7.123	0.000	58.151

Source: Authors’ calculation from dataset

Table 2. Correlation matrix

	NPLR	CCI	HHC	GOV	Efficiency	Profitability	CAP	LIQ	RGDP	POPG	Fixed
NPLR	1.000
CCI	−0.3487	1.000
HHC	0.2556	−0.388	1.000
GOV	−0.1105	0.4852	−0.3269	1.000
EFFICIENCY	0.135	−0.2993	0.1788	−0.1189	1.000
PROFITABILITY	−0.2463	−0.2039	0.112	−0.1635	0.1372	1.000
CAP	0.123	−0.4989	0.2575	−0.2643	0.0664	0.2812	1.000
LIQ	0.1038	−0.3667	0.0984	−0.2261	0.258	0.1291	−0.0392	1.000
RGDP	−0.0687	−0.1963	−0.02	−0.309	0.0268	0.2549	0.1811	0.065	1.000
POPG	−0.0539	−0.1217	−0.1217	−0.2327	0.0345	0.1827	0.0596	−0.0321	0.1707	1.000
FIXED	−0.2092	−0.0905	−0.3084	−0.0582	−0.1593	0.1124	0.0873	0.1083	0.2602	0.0344	1.000

Source: Authors’ calculation from dataset

Table 3. Corruption, nonperforming loans, and economic growth

	Dependent variable
	NPLR		RGDP
	Coeff.	Std. dev.	Coeff.	Std. dev.
NPLR			−0.240***	(0.080)
CCI	−2.436***	(0.368)	−0.427	(0.277)
RGDP	−0.889	(0.568)	-
HHC	−0.242	(0.237)	-
GOV	−0.142	(0.126)	−0.216***	(0.034)
EFFICIENCY	−0.027	(0.040)	-
ROA	−0.555***	(0.151)	-
CAP	0.036	(0.062)	-
LIQUIDITY	0.009	(0.015)	-
POPG	-		0.488***	(0.156)
FIXED	-		0.053***	(0.017)
CONSTANT	12.069***	(2.881)	6.278***	(0.864)
R^2	−0.032		0.145
N	525		525

*, **, and *** denote the significance levels at 10%, 5%, and 1%, respectively. Numbers in parentheses are standard errors.

Table 4. System generalized method of moment estimation

RGDP	Coeff.	Std. err.
RGDP, lagged	0.030***	(0.004)
NPLR	−0.033***	(0.003)
CCI	1.341***	(0.199)
CCI*NPLR	0.020***	(0.008)
POPG	0.027***	(0.009)
FIXED	0.146***	(0.005)
GOV	−0.493***	(0.008)
CONSTANT	8.074***	(0.228)
AR(3)	0.021
AR(4)	0.514
Hansen test	0.871

*, **, and *** denote the significance levels at 10%, 5%, and 1%, respectively. Numbers in parentheses are standard errors. The instruments are from lag of level 5 to 7, and the AR(4) test suggests that there is no autocorrelation from lag level 4.

Table 5. Robustness test: alternative corruption index

	Dependent variable
	NPLR		RGDP
	Coeff.	Std. dev.	Coeff.	Std. dev.
NPLR			−0.240***	(0.078)
ICRG	−1.685***	(0.295)	−0.318	(0.210)
RGDP	−0.667	(0.548)	-
HHC	−0.272	(0.230)	-
GOV	−0.171	(0.118)	−0.230***	(0.031)
EFFICIENCY	0.004	(0.040)	-
ROA	−0.622***	(0.146)	-
CAP	0.095	(0.061)	-
LIQUIDITY	0.016	(0.015)	-
POPG			0.494***	(0.149)
FIXED			0.057***	(0.018)
CONSTANT	15.504***	(2.751)	6.278***	(0.864)
R^2	0.025		0.144
N	525		525

*, **, and *** represent the significance levels at 10%, 5%, and 1%, respectively. Numbers in parentheses are standard errors.