The Impact of Corruption on Financial Development and Access to Modern Financial Services: Evidence From Sub-Saharan Africa

Abstract

The authors examine the impact of corruption on sustainability in African countries. The research is based on public databases. On the one hand, the authors use the composite index of the African Development Bank's Country Policy and Institutional Assessment, which describes the corruption situation in the public sector. The other source is the public database of the World Bank's Global Findex Report, which reports on the development and availability of financial services every three years on average. The authors examined the relationship between corruption and financial development using an ordinal multinomial logistic regression model. With the help of the model, the authors were able to prove that in the countries of Sub-Saharan Africa there is a correlation between the availability of modern financial services and the level of corruption in the public sector. It was also shown that as the gross national income increases, the corruption in the public sector in these countries also increases. The study draws attention to the importance of knowing and using modern financial services in the fight against corruption.