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Corrupt Clubs and the Convergence Hypothesis

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  • Naved Ahmad

    (Institute of Business Administration (IBA), Karachi, Pakistan.)

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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Suggested Citation

  • Naved Ahmad, 2006. "Corrupt Clubs and the Convergence Hypothesis," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 45(4), pages 1001-1009.
    • Handle: RePEc:pid:journl:v:45:y:2006:i:4:p:1001-1009
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    References listed on IDEAS

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    Cited by:

    1. Bienvenido Ortega & Antonio Casquero & Jesús Sanjuán, 2016. "Corruption and Convergence in Human Development: Evidence from 69 Countries During 1990–2012," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(2), pages 691-719, June.
    2. Şerife Özşahin & Gülbahar Üçler, 2017. "The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests," Economies, MDPI, vol. 5(4), pages 1-15, December.
    3. Na Zhang & Chao Sun & Min Xu & Xuemei Wang & Jia Deng, 2023. "Catching Up of Latecomer Economies in ICT for Sustainable Development: An Analysis Based on Technology Life Cycle Using Patent Data," Sustainability, MDPI, vol. 15(11), pages 1-29, June.

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