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Corruption in Developing Countries

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  • Benjamin A. Olken
  • Rohini Pande

Abstract

Recent years have seen a remarkable expansion in economists’ ability to measure corruption. This, in turn, has led to a new generation of well-identified, microeconomic studies. We review the evidence on corruption in developing countries in light of these recent advances, focusing on three questions: how much corruption is there, what are the efficiency consequences of corruption, and what determines the level of corruption. We find robust evidence that corruption responds to standard economic incentive theory, but also that effects of anti-corruption policies often attenuate as officials find alternate strategies to pursue rents.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 17398.

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Date of creation: Sep 2011
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Publication status: published as Benjamin A. Olken & Rohini Pande, 2012. "Corruption in Developing Countries," Annual Review of Economics, Annual Reviews, vol. 4(1), pages 479-509, 07.
Handle: RePEc:nbr:nberwo:17398

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Cited by:
  1. Frías, Judith A & Kumler, Todd & Verhoogen, Eric A, 2013. "Enlisting Employees in Improving Payroll-Tax Compliance: Evidence from Mexico," CEPR Discussion Papers 9622, C.E.P.R. Discussion Papers.
  2. Tim Besley & Thiemo Fetzer & Hannes Mueller, 2012. "One Kind of Lawlessness: Estimating the Welfare Cost of Somali Piracy," Working Papers 626, Barcelona Graduate School of Economics.
  3. Esther Duflo & Michael Greenstone & Rohini Pande & Nicholas Ryan, 2013. "Truth-telling by Third-party Auditors and the Response of Polluting Firms: Experimental Evidence from India," NBER Working Papers 19259, National Bureau of Economic Research, Inc.
  4. Mihaly Fazekas & Istvan Janos Toth & Lawrence Peter King, 2014. "Anatomy of grand corruption: A composite corruption risk index based on objective data," IEHAS Discussion Papers 1403, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  5. Dufwenberg, Martin & Spagnolo, Giancarlo, 2012. "Legalizing Bribe Giving," CEPR Discussion Papers 9236, C.E.P.R. Discussion Papers.
  6. Patrick Carter, 2012. "Aid Allocation Rules," Bristol Economics Discussion Papers 12/630, Department of Economics, University of Bristol, UK.
  7. Afridi, Farzana & Iversen, Vegard, 2014. "Social Audits and MGNREGA Delivery: Lessons from Andhra Pradesh," IZA Discussion Papers 8095, Institute for the Study of Labor (IZA).
  8. William W. Olney, 2013. "Impact of Corruption on Firm Level Export Decisions," Department of Economics Working Papers 2013-04, Department of Economics, Williams College.
  9. van Veldhuizen, Roel, 2013. "The influence of wages on public officials' corruptibility: A laboratory investigation," Discussion Papers, Research Unit: Market Behavior SP II 2013-210, Social Science Research Center Berlin (WZB).
  10. van Veldhuizen, R., 2013. "The influence of wages on public officials’ corruptibility: A laboratory investigation," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 341-356.
  11. Beekman, Gonne & Bulte, Erwin H. & Nillesen, Eleonora E.M., 2013. "Corruption and economic activity: Micro level evidence from rural Liberia," European Journal of Political Economy, Elsevier, vol. 30(C), pages 70-79.
  12. Dmitry Ryvkin & Danila Serra, 2013. "Does Competition Among Public Officials Reduce Corruption? An Experiment," Departmental Working Papers 1301, Southern Methodist University, Department of Economics.
  13. Bledi Celiku, 2013. "Crackdown on Corruption: A Natural Experiment in Safe and Swing Districts," 2013 Papers pce148, Job Market Papers.
  14. Raymond Fisman & Florian Schulz & Vikrant Vig, 2012. "Private Returns to Public Office," Working Papers id:4979, eSocialSciences.

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