Corruption, Income Distribution, and Growth
This paper uses an encompassing framework developed by Murphy et al. (1991, 1993) to study corruption and how it affects income distribution and growth. We find that (1) corruption affects income distribution in an inverted U-shaped way, (2) corruption alone also explains a large proportion of the Gini differential across developing and industrial countries, and (3) that even after correcting for measurement errors, corruption still retards economic growth. But the effect is far less pronounced than the one found in Mauro (1995). Moreover, corruption alone explains little of the continental growth differentials. In countries where the asset distribution is less equal, corruption is associated with a smaller increase in income inequality and a larger drop in growth rates.
|Date of creation:||2000|
|Date of revision:|
|Publication status:||Published in Economics & Politics, Volume 12, Issue 2, pages 155¨C182, July 2000|
|Contact details of provider:|| Web page: http://cema.cufe.edu.cn/|
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- Zhang, Tao & Zou, Heng-fu, 1998.
"Fiscal decentralization, public spending, and economic growth in China,"
Journal of Public Economics,
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