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corruption and economic growth

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  • Niloy Bose

Abstract

Theory is divided over the effects of corruption on economic growth. However, the growing consensus based on the empirical literature is that corruption is associated with negative growth outcomes. This relationship is not necessarily linear, and causality between corruption and economic growth can run in both directions.

Suggested Citation

  • Niloy Bose, 2010. "corruption and economic growth," The New Palgrave Dictionary of Economics, Palgrave Macmillan.
  • Handle: RePEc:pal:dofeco:v:4:year:2010:doi:1925
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    More about this item

    Keywords

    corruption; economic growth; multiple equilibria; threshold effects; two-way causality;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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