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Corrupt clubs and the convergence hypothesis

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  • Naved Ahmad

Abstract

Empirical work in a cross-section framework demonstrates little or no support for absolute convergence in per capita GDP. I argue in this paper that “divergence in corruption”, defined as the tendency of corrupt countries to become more corrupt faster than less corrupt nations, is a neglected factor that also determines the speed of convergence. Using Transparency International (TI) corruption perceptions index, I estimate C-σ and C-γ coefficients for corrupt and less corrupt economies to explore the C-divergence in corruption rankings. The study concludes that corrupt countries are C-converging, forming a “corrupt club”.

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File URL: http://www.tandfonline.com/doi/abs/10.1080/17487870802031395
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Journal of Economic Policy Reform.

Volume (Year): 11 (2008)
Issue (Month): 1 ()
Pages: 21-28

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Handle: RePEc:taf:jpolrf:v:11:y:2008:i:1:p:21-28

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Related research

Keywords: corruption indices; corrupt club; C-convergence; convergence; backwardness;

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  1. Gerry Boyle; & Tom McCarthy, 1997. "Simple Measures of Convergence in Per Capita GDP: A Note on Some Further International Evidence," Economics, Finance and Accounting Department Working Paper Series n751197, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  2. M. Alam, 1992. "Convergence in developed countries: an empirical investigation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 128(2), pages 189-201, June.
  3. Friedman, Milton, 1992. "Do Old Fallacies Ever Die?," Journal of Economic Literature, American Economic Association, vol. 30(4), pages 2129-32, December.
  4. Abramovitz, Moses, 1986. "Catching Up, Forging Ahead, and Falling Behind," The Journal of Economic History, Cambridge University Press, vol. 46(02), pages 385-406, June.
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