IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Endogenous Corruption, Inequality and Growth: Econometric Evidence

  • Raul A. Barreto

    ()

    (School of Economics, University of Adelaide)

This paper empirically addresses three questions. First, what is corruption's effect on economic growth? Second, what are the factors that determine corruption? Third, what is the relationship among corruption, economic growth, and income distribution? I use a cross section of countries, both developed and underdeveloped. I find that corruption is an important determinant of both per-capita real growth and of the distribution of income. Corruption is positively and significantly correlated with growth, implying that corruption has efficiency-enhancing qualities. Corruption is positively and significantly correlated with inequality, implying that increased income inequality is associated with greater corruption. The most robust specification, which associates three jointly dependent equations using a two-stage least squares estimation technique, reinforces the proposition that corruption enhances efficiency, justifies inequality's role in determining growth rates, and lends support to the theory of international convergence of growth rates.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://www.economics.adelaide.edu.au/research/papers/doc/wp2001-02.pdf
Download Restriction: no

Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2001-02.

as
in new window

Length: 37 pages
Date of creation: 2001
Date of revision:
Handle: RePEc:adl:wpaper:2001-02
Contact details of provider: Postal: Adelaide SA 5005
Phone: (618) 8303 5540
Web page: http://www.economics.adelaide.edu.au/

More information through EDIRC

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

as in new window
  1. Barro, Robert J, 1991. "Economic Growth in a Cross Section of Countries," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 407-43, May.
  2. Anand, Sudhir & Kanbur, S. M. R., 1993. "The Kuznets process and the inequality--development relationship," Journal of Development Economics, Elsevier, vol. 40(1), pages 25-52, February.
  3. Summers, Robert & Heston, Alan, 1991. "The Penn World Table (Mark 5): An Expanded Set of International Comparisons, 1950-1988," The Quarterly Journal of Economics, MIT Press, vol. 106(2), pages 327-68, May.
  4. Borsu, A. & Glejser, H., 1992. "Do protection, schooling, product per head and income distribution influence growth? : A cross sectional analysis," European Economic Review, Elsevier, vol. 36(6), pages 1235-1239, August.
  5. Bourguignon, F. & Morrisson, C., 1989. "Income Distribution, Development and Foreign Trade: A Cross-Sectional Analysis," DELTA Working Papers 89-05, DELTA (Ecole normale supérieure).
  6. Fields, Gary S, 1989. "Changes in Poverty and Inequality in Developing Countries," World Bank Research Observer, World Bank Group, vol. 4(2), pages 167-85, July.
  7. Alesina, Alberto F & Rodrik, Dani, 1991. "Distributive Politics and Economic Growth," CEPR Discussion Papers 565, C.E.P.R. Discussion Papers.
  8. Park, Walter G & Brat, David A, 1995. "A Global Kuznets Curve?," Kyklos, Wiley Blackwell, vol. 48(1), pages 105-31.
  9. Adelman, Irma & Robinson, Sherman, 1989. "Income distribution and development," Handbook of Development Economics, in: Hollis Chenery & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 19, pages 949-1003 Elsevier.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:adl:wpaper:2001-02. 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: (Dmitriy Kvasov)

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.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with 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 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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.