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Corruption and Growth: Evidence from the Italian Regions

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Author Info

  • Nadia Fiorino

    (University of L’Aquila)

  • Emma Galli

    (‘La Sapienza’ University of Rome)

  • Ilaria Petrarca

    (University of Verona)

Abstract

This paper investigates the impact of corruption on economic growth in the Italian Regions. We estimate a dynamic growth model for the period 1980-2004 addressing both the potential bias of the measures of corruption and the endogeneity between corruption and economic development. We find strong evidence of a negative correlation between corruption and growth. Moreover, since government intervention has been traditionally used to reduce income differentials between the Northern and the Southern regions, we also analyze the interaction between corruption and government expenditure. Our results indicate that corruption undermines the positive impact that public expenditures have on economic growth.

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Bibliographic Info

Article provided by Europa Grande in its journal European Journal of Government and Economics.

Volume (Year): 1 (2012)
Issue (Month): 2 (December)
Pages: 126-144

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Handle: RePEc:egr:ejge00:v:1:i:2:p:126-144

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Related research

Keywords: corruption; associative crimes; economic growth; dynamic estimation;

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References

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Citations

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Cited by:
  1. Diego Varela & Giacomo Benedetto & Jose Manuel Sanchez-Santos, 2013. "Editorial statement: The first two years of EJGE," European Journal of Government and Economics, Europa Grande, vol. 2(2), pages 95-99, December.
  2. Raul Caruso & Adelaide Baronchelli, 2013. "Economic aspects of the complementarity between corruption and crime: evidence from Italy in the period 1996-2005," International Journal of Monetary Economics and Finance, Inderscience Enterprises Ltd, vol. 6(2/3), pages 244-260.
  3. Ilaria Petrarca & Roberto Ricciuti, 2013. "The Historical Roots of Corruption and Economic Development in Italy," CESifo Working Paper Series 4212, CESifo Group Munich.

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