IDEAS home Printed from https://ideas.repec.org/a/spr/ecogov/v3y2002i3p183-209.html
   My bibliography  Save this article

Corruption, economic growth, and income inequality in Africa

Author

Listed:
  • Kwabena Gyimah-Brempong

Abstract

This paper uses panel data from African countries and a dynamic panel estimator to investigate the effects of corruption on economic growth and income distribution. I find that corruption decreases economic growth directly and indirectly through decreased investment in physical capital. A unit increase in corruption reduces the growth rates of GDP and per capita income by between 0.75 and 0.9 percentage points and between 0.39 and 0.41 percentage points per year respectively. The results also indicate that increased corruption is positively correlated with income inequality. The combined effects of decreased income growth and increased inequality suggests that corruption hurts the poor more than the rich in African countries. Copyright Springer-Verlag Berlin Heidelberg 2002

Suggested Citation

  • Kwabena Gyimah-Brempong, 2002. "Corruption, economic growth, and income inequality in Africa," Economics of Governance, Springer, vol. 3(3), pages 183-209, November.
  • Handle: RePEc:spr:ecogov:v:3:y:2002:i:3:p:183-209 DOI: 10.1007/s101010200045
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s101010200045
    Download Restriction: Access to full text is restricted to subscribers.

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Craig, Steven G. & Holsey, Cheryl M., 1997. "Efficient inequality: differential allocation in the local public sector," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 763-784, November.
    2. Thomas Romer & Howard Rosenthal, 1979. "Bureaucrats Versus Voters: On the Political Economy of Resource Allocation by Direct Democracy," The Quarterly Journal of Economics, Oxford University Press, vol. 93(4), pages 563-587.
    3. Denzau, Arthur T & Mackay, Robert J, 1976. "Benefit Shares and Majority Voting," American Economic Review, American Economic Association, pages 69-76.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Key words: Corruption; economic growth; income distribution; dynamic panel estimator; Africa; JEL Classification: O11; O55; K42;

    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ecogov:v:3:y:2002:i:3:p:183-209. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla) or (Rebekah McClure). General contact details of provider: http://www.springer.com .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.