Impact of economic and financial crimes on economic growth in emerging and developing countries. A systematic review

Publication Date02 Jul 2019
AuthorSani Abubakar Saddiq,Abu Sufian Abu Bakar
SubjectFinancial risk/company failure,Financial crime
Impact of economic and
nancial crimes on economic
growth in emerging and
developing countries
A systematic review
Sani Abubakar Saddiq
Department of General Studies, Abubakar Tatari Ali Polytechnic, Bauchi, Nigeria, and
Abu Sufian Abu Bakar
School of Economics, Finance and Banking,
Universiti Utara Malaysia, Sintok, Malaysia
Purpose The purpose of the study is to investigate the impact of economic and nancial crimes on the
economiesof emerging and developing countries.
Design/methodology/approach Preferred Reporting Itemsfor Systematic review and Meta-Analysis
(PRISMA) guidelines and meta-analysis of economics research reporting guidelines were used to conduct a
quantitativesynthesis of empirical evidence on the impact of economic and nancialcrimes in developingand
Findings A total of 103 studies were searched, outof which 6 met the selection/eligibility criteria of this
systematic review. The six selected studies indicated that economic and nancial crimes have a negative
impact in emergingand developing countries.
Originality/value To the best knowledge of the authors,no published systematic review of the impact of
economicand nancial crimes in developing countries has been conducted to date.
Keywords Impact, Systematic review, Economic and nancial crimes,
Emerging and developing countries
Paper type Literature review
Past studies conducted reveal that economicand nancial crimes have continued to increase
despite tough policymeasures put in place in both developed and developing countries. For
instance, it was estimated that $1.5 trillionto $2 trillion (or around 2 per cent of global gross
domestic product [GDP]) in bribes are paid annually in both developing and developed
countries (Lagarde, 2016). It was estimated that illicit nancial ows (IFFs) from developing
and emerging economies stood at nearly US$1 trillion in 2014 (Global Financial Integrity,
2017). Developing countries are at high risk of incidences of economic and nancial crimes.
For example, the poor in developing countries pay as high as 6.4 to 12.6 per cent of their
incomes in bribe (World Bank Group, 2017). In Nigeria, a survey conducted in 2017 reveals
that 95 per cent of Nigeriansindulge in bribery (NationalBureau for Statistics,2017).
Similarly, research studies conducted by various scholars, institutions, authorities and
organizations have consistently revealed negative impact of economic and nancial crimes
Journalof Financial Crime
Vol.26 No. 3, 2019
pp. 910-920
© Emerald Publishing Limited
DOI 10.1108/JFC-10-2018-0112
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