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The Dividends of Good Governance

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  • Riccardo Pelizzo
  • Frederick Stapenhurst

Abstract

Building on an extensive literature on corruption, growth, and development, the article shows that corruption is not simply associated with lower levels of socioeconomic development, but that it also has a significant causal effect on a country's level of socioeconomic development. The basic implication of the findings presented in the article is that the reduction in the level of corruption in a given country leads to greater wealth, higher levels of education, longer life expectancy, and lower infant mortality—this is why we speak of the dividends of good governance.

Suggested Citation

  • Riccardo Pelizzo & Frederick Stapenhurst, 2013. "The Dividends of Good Governance," Poverty & Public Policy, John Wiley & Sons, vol. 5(4), pages 370-384, December.
    • Handle: RePEc:wly:povpop:v:5:y:2013:i:4:p:370-384
    DOI: 10.1002/pop4.49
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    References listed on IDEAS

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    3. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
    4. Friedman, Eric & Johnson, Simon & Kaufmann, Daniel & Zoido-Lobaton, Pablo, 2000. "Dodging the grabbing hand: the determinants of unofficial activity in 69 countries," Journal of Public Economics, Elsevier, vol. 76(3), pages 459-493, June.
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