Corruption clubs: endogenous thresholds in corruption and development
AbstractThe relationship between corruption and economic development is characterised by three stylised facts: (i) a strong negative correlation between corruption and development (ii) countries can remain trapped in high corruption-low development or low corruption-high development equilibria (iii) amongst intermediate levels of development corruption levels are more variable, some countries have high corruption and others low corruption. This paper argues that existing models are consistent with the first two only and demonstrates how these models might be extended to capture all three. The paper searches for the location of corruption clubs within the data and provides some explanation of their cause.
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Bibliographic InfoArticle provided by Springer in its journal Economics of Governance.
Volume (Year): 10 (2009)
Issue (Month): 4 (November)
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Web page: http://link.springer.de/link/service/journals/10101/index.htm
Other versions of this item:
- M E Haque & R Kneller, 2005. "Corruption Clubs: Endogenous Thresholds in Corruption and Development," Centre for Growth and Business Cycle Research Discussion Paper Series 67, Economics, The Univeristy of Manchester.
- M. Emranul Haque & Richard Kneller, 2005. "Corruption Clubs: Endogenous Thresholds in Corruption and Development," The School of Economics Discussion Paper Series 0544, Economics, The University of Manchester.
- D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
- H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion
- O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
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