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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- Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Governance matters," Policy Research Working Paper Series 2196, The World Bank.
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- 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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- Robert E. Hall & Charles I. Jones, 1999. "Why do Some Countries Produce So Much More Output Per Worker than Others?," The Quarterly Journal of Economics, Oxford University Press, vol. 114(1), pages 83-116.
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- Kaufmann, Daniel & Kraay, Aart & Zoido-Lobaton, Pablo, 1999. "Aggregating governance indicators," Policy Research Working Paper Series 2195, The World Bank. Full references (including those not matched with items on IDEAS)
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