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Corruption Control and Economic Growth : A Meta-Analysis with Regional Evidence

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  • IWASAKI, Ichiro

Abstract

Synthesizing 1,052 estimates extracted from 116 studies, this paper examines whether corruption control impacts economic growth and whether the effect differs across regions. Using heterogeneity-robust synthesis methods, we find evidence that corruption control promotes economic growth both globally and at the regional level. Although publication selection bias is present in the literature, bias-corrected effect sizes remain positive and statistically significant, indicating a genuine growth-enhancing effect. Meta-regression analysis further reveals significant regional heterogeneity: the growth effect of corruption control is significantly stronger in Asia and Latin America than in Europe and the Middle East and Africa, even after controlling for study characteristics. Our findings support the “sand the wheels” hypothesis and imply that corruption reflects institutional failure rather than a functional informal institution.

Suggested Citation

  • IWASAKI, Ichiro, 2026. "Corruption Control and Economic Growth : A Meta-Analysis with Regional Evidence," Discussion Paper Series 783, Institute of Economic Research, Hitotsubashi University.
    • Handle: RePEc:hit:hituec:783
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    Keywords

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    JEL classification:

    • E26 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Informal Economy; Underground Economy
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies

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