Corruption, Productivity and Transition
The level of productivity is correlated across countries with measures of (lack of) corruption, but this appears to be due to a common association of these variables with measures of social infrastructure, here measured by a combination of governance indexes labelled "rule of law" and "government effectiveness". Econometric use of instruments establishes that causation runs from social infrastructure to productivity. Socialism has had a positive direct effect on productivity but one that is dominated by a negative indirect effect via social infrastructure.
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Policy Research Working Paper Series
2312, The World Bank.
- Joel S. Hellman & Geraint Jones & Daniel Kaufmann & Mark Schankerman, 2003. "Measuring Governance, Corruption and State Capture: How Firms and Bureaucrats Shape the Business Environment in Transition Economies," Development and Comp Systems 0308004, EconWPA.
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National Bureau of Economic Research, Inc, number barr93-1, December.
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