Does Democracy nurture Corruption in Algeria? An Empirical Study of the Impact of Democracy on Corruption during the period 1984-2018

Abstract

In the context of the relationship between democracy and corruption, this paper aims to delve the impact of democracy and religion in politics on corruption rates in Algeria during the period 1984-2018. Based on a Vector Error Correction Model, and OLS estimator, the results show that there is a long run association (Co-integration) between democracy, religion and corruption, moreover, in the short run and during 1984-2018, democracy is considered as one of the causes that stimulate corruption (1% increase in democracy, increases corruption by 3.6%), while religion might hinder it.