Corruption as a response to regulation
AbstractPrevious research has found a negative effect of corruption on growth in the United States. However, some theory suggests corruption might have a positive impact in places with dysfunctional political institutions. This paper investigates whether the corruption-growth link is conditional on the extent of government involvement across U.S. states. Even though no state approaches the level of government intervention found in many developing countries, we still find evidence that corruption’s harmful effects on growth are smaller when regulation is greater.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36873.
Date of creation: Feb 2012
Date of revision:
Corruption; U.S. States; Growth; Regulation;
Find related papers by JEL classification:
- O1 - Economic Development, Technological Change, and Growth - - Economic Development
- D7 - Microeconomics - - Analysis of Collective Decision-Making
- H7 - Public Economics - - State and Local Government; Intergovernmental Relations
- K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-08 (All new papers)
- NEP-POL-2012-03-08 (Positive Political Economics)
- NEP-REG-2012-03-08 (Regulation)
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