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corruption and economic growth

Author

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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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    File URL: http://www.dictionaryofeconomics.com/article?id=pde2010_C000616
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    Citations

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    Cited by:

    1. Alexander Henke & Fahad Khalil & Jacques Lawarree, 2022. "Honest agents in a corrupt equilibrium," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 31(3), pages 762-783, August.
    2. Soldatos, Gerasimos T., 2014. "Bureaucracy, Underground Activities, and Fluctuations," MPRA Paper 60858, University Library of Munich, Germany.

    More about this item

    Keywords

    corruption; economic growth; multiple equilibria; threshold effects; two-way causality;
    All these keywords.

    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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