Organized crime, corruption and the challenges of economic growth in the economic community of West African states
| DOI | https://doi.org/10.1108/JFC-05-2021-0115 |
| Published date | 04 August 2021 |
| Date | 04 August 2021 |
| Pages | 1091-1101 |
| Subject Matter | Accounting & finance,Financial risk/company failure,Financial crime |
| Author | Mallam Isgogo Mohammed,Abbsinejad Hossein,Chukwudi C. Nwokolo |
Organized crime, corruption and
the challenges of economic growth
in the economic community of
West African states
Mallam Isgogo Mohammed and Abbsinejad Hossein
Department of Economics, University of Tehran, Tehran, Iran, and
Chukwudi C. Nwokolo
Centre for Entrepreneurship and DevelopmentResearch/Department of Economics,
University of Nigeria, Nsukka,Nigeria and Department of Economics,
University of Nigeria, Nsukka, Nigeria
Abstract
Purpose –This study aims to examine organized crime, corruption and their challenges to the economic
growth of the EconomicCommunity of West African States (ECOWAS). Organizedcrime and corruption can
have a grossly negative impact on the economic growthprocess of every system, but the extent of damage
they have needsto be measured to determine the policy implicationsto the region.
Design/methodology/approach –The study uses the fixed effects model and thefeasible generalized
least square known alsoas the random-effects model with the pooled ordinary least square as a control on the
defined objectivesusing secondary time series data that covers the period2000 to 2019 for 11 countries in the
ECOWAS region. The panelnature of the data set provides a rich degree of freedom with 220 (20 years for 11
countries–20*11 = 220) observations.
Findings –Resultsshow among others that organized crime does not have a significant impact on economic
growth,whereas corruption significantly reduces economicgrowth.
Research limitations/implications –Unavailabilityof data affected the scope of the study in the areas
of a number of countries selectedand years chosen for the study. The implication is that it would have given
the study betterdegrees of freedom.
Practical implications –The practical implication of this study has exposed corruption hinders
economicgrowth in West Africa.
Social implications –The social implicationof the study is that it has exposed that though the organized
crime wasa bad phenomenonit does not retard economic growth significantlyin West Africa.
Originality/value –This study is original and of immense importance as its the first study to focus on
organizedcrime and corruption’sinfluence on economicgrowth among West African states.
Keywords Economic growth, Corruption, ECOWAS, Organized crime
Paper type Research paper
Introduction
Organized crime has become a topical issue for years now.This is because of the high level
of its prevalence and the immense negative effect it has on economies. Despite this,
organized crime as a term is oftenused quite carelessly and most times it carries with it the
image of the godfathers and criminal hierarchies who are usually involved in extortions,
vices and/or drug trafficking, however, organized crime does not apply to only illegal
activities. Thus, one might define organized crime as an alliance between corrupt leaders
Organized
crime
1091
Journalof Financial Crime
Vol.29 No. 3, 2022
pp. 1091-1101
© Emerald Publishing Limited
1359-0790
DOI 10.1108/JFC-05-2021-0115
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