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Is there a direct effect of corruption on growth?

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  • Dzhumashev, Ratbek

Abstract

Recent empirical studies find that the direct effect of corruption on growth is statistically insignificant. However, there exists a discrepancy between these results and the intuition that corruption reduces over-all productivity, because total factor productivity also depends on the quality of institutions and their efficiency. The current paper addresses this issue and offers a new perspective on growth effects of corruption and shows that direct and indirect growth effects of corruption can be statistically significant. Moreover, the empirical results confirm the existence of both negative and positive growth effect of corruption.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 18489.

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Date of creation: 09 Nov 2009
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Handle: RePEc:pra:mprapa:18489

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Keywords: corruption; growth;

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References

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Cited by:
  1. Asongu, Simplice A. & Kodila-Tedika, Oasis, 2013. "Crime and conflicts in Africa: consequences of corruption?," European Economic Letters, European Economics Letters Group, vol. 2(2), pages 50-55.
  2. Asongu Simplice & Oasis Kodila-Tedika, 2013. "Fighting African Conflicts and Crimes: Which Governance Tools Matter?," Working Papers 13/007, African Governance and Development Institute..
  3. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
    [Consequences of Corruption : Empirical survey]
    ," MPRA Paper 41482, University Library of Munich, Germany.
  4. Egunjobi T. Adenike, 2013. "An econometric analysis of the impact of Corruption on economic growth in Nigeria," E3 Journal of Business Management and Economics., E3 Journals, vol. 4(3), pages 054-065.
  5. Ugur, Mehmet & Dasgupta, Nandini, 2011. "Corruption and economic growth: A meta-analysis of the evidence on low-income countries and beyond," MPRA Paper 31226, University Library of Munich, Germany, revised 31 May 2011.

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