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Corruption and Economic Growth: An Econometric Survey of the Evidence

Author

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  • Nauro F. Campos
  • Ralitza Dimova
  • Ahmad Saleh

Abstract

Does corruption grease or sand the wheels of economic growth? This paper provides a systematic evaluation of the effect of corruption on growth, using meta-analysis techniques for 460 estimates from 41 studies. We find that publication bias, albeit acute, does not dissipate the genuine and negative effect of corruption on growth. Among the main factors explaining the variation in the estimated effects, we find that taking account of (a) trade openness and institutions and (b) authors with academic affiliations (as opposed to think tanks and international organizations) seems to help generate less negative effects of corruption on growth.

Suggested Citation

  • Nauro F. Campos & Ralitza Dimova & Ahmad Saleh, 2016. "Corruption and Economic Growth: An Econometric Survey of the Evidence," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 172(3), pages 521-543, September.
    • Handle: RePEc:mhr:jinste:urn:sici:0932-4569(201609)172:3_521:caegae_2.0.tx_2-d
    DOI: 10.1628/093245616X14616712130543
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    Citations

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    Cited by:

    1. Fernando del Río, 2021. "The impact of rent seeking on social infrastructure and productivity," Review of Development Economics, Wiley Blackwell, vol. 25(3), pages 1741-1760, August.
    2. Vita, Giuseppe Di, 2021. "Political corruption and legislative complexity: Two sides of same coin?," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 136-147.
    3. Vahe Lskavyan, 2023. "Corruption and foreign bank entry denials: A cross‐country panel analysis," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 28(4), pages 4592-4603, October.
    4. Daniel Herold, 2017. "The Impact of Incentive Pay on Corporate Crime," MAGKS Papers on Economics 201752, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    5. del Río, Fernando, 2018. "Governance, social infrastructure and productivity," MPRA Paper 86245, University Library of Munich, Germany, revised 16 Apr 2018.
    6. Cieślik, Andrzej & Goczek, Łukasz, 2018. "Control of corruption, international investment, and economic growth – Evidence from panel data," World Development, Elsevier, vol. 103(C), pages 323-335.
    7. Dincer, Oguzhan & Gunalp, Burak, 2020. "The effects of federal regulations on corruption in U.S. States," European Journal of Political Economy, Elsevier, vol. 65(C).
    8. Joseph Pozsgai-Alvarez & Iván Pastor Sanz, 2021. "Mapping the (anti-)corruption field: key topics and changing trends, 1968–2020," Journal of Computational Social Science, Springer, vol. 4(2), pages 851-881, November.

    More about this item

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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