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Bureaucratic Corruption and Income: Evidence from the Land Sector in Bangladesh

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  • Asadul Islam
  • Wang-Sheng Lee

Abstract

We examine, for the first time, the effects of corruption on income using household survey data from a developing country. Estimating the effects of corruption on income is challenging because of the simultaneous relationship between the two variables. We use a two-step instrumental variable approach to identify the effects of corruption on income. We find that after adjusting for simultaneity bias the act of bribery reduces income and that higher bribes have a negative effect on income. Taken together, our results provide a possible explanation why a vicious cycle between corruption and income inequality does not exist in the land sector in Bangladesh.

Suggested Citation

  • Asadul Islam & Wang-Sheng Lee, 2016. "Bureaucratic Corruption and Income: Evidence from the Land Sector in Bangladesh," Journal of Development Studies, Taylor & Francis Journals, vol. 52(10), pages 1499-1516, October.
    • Handle: RePEc:taf:jdevst:v:52:y:2016:i:10:p:1499-1516
    DOI: 10.1080/00220388.2016.1146702
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    References listed on IDEAS

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    1. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, December.
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    Cited by:

    1. Hailin Chen & Friedrich Schneider & Qunli Sun, 2018. "Size, Determinants, and Consequences of Corruption in China's Provinces: The MIMIC Approach," CESifo Working Paper Series 7175, CESifo.
    2. Roberta Troisi & Annamaria Nese & Rocío Blanco-Gregory & Monica Anna Giovanniello, 2023. "The Effects of Corruption and Innovation on Sustainability: A Firm-Level Analysis," Sustainability, MDPI, vol. 15(3), pages 1-15, January.
    3. Aravindakshan, Sreejith & Krupnik, Timothy J. & Groot, Jeroen C.J. & Speelman, Erika N. & Amjath- Babu, T.S. & Tittonell, Pablo, 2020. "Multi-level socioecological drivers of agrarian change: Longitudinal evidence from mixed rice-livestock-aquaculture farming systems of Bangladesh," Agricultural Systems, Elsevier, vol. 177(C).

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