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Corruption, Structural Reforms, and Economic Performance in the Transition Economies

Author

Listed:
  • George T. Abed
  • Hamid R Davoodi

Abstract

Recent studies have highlighted the adverse impact of corruption on economic performance. This paper advances the hypothesis that corruption is largely a symptom of underlying weaknesses in public policies and institutions, a formulation that provides deeper insights into economic performance than do measures of “perceived corruption.” The hypothesis is tested by assessing the relative importance of structural reforms vs. corruption in explaining macroeconomic performance in the transition economies. The paper finds that for four widely used measures of economic performance—growth, inflation, the fiscal balance, and foreign direct investment—structural reforms tend to dominate the corruption variable.

Suggested Citation

  • George T. Abed & Hamid R Davoodi, 2000. "Corruption, Structural Reforms, and Economic Performance in the Transition Economies," IMF Working Papers 00/132, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:00/132
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    References listed on IDEAS

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      • Eddie Dekel & Matthew O. Jackson & Asher Wolinsky, 2005. "Vote Buying," Others 0503006, EconWPA.
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    4. Nitzan, Shmuel, 1994. "Modelling rent-seeking contests," European Journal of Political Economy, Elsevier, vol. 10(1), pages 41-60, May.
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    Citations

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    Cited by:

    1. Iwasaki, Ichiro & Kumo, Kazuhiro, 2016. "Decline and Growth in Transition Economies: A Meta-Analysis," CEI Working Paper Series 2016-9, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    2. Campos, Nauro F & Kinoshita, Yuko, 2008. "Foreign Direct Investment and Structural Reforms: Evidence from Eastern Europe and Latin America," CEPR Discussion Papers 6690, C.E.P.R. Discussion Papers.
    3. Anis Omri & Amel Sassi-Tmar, 2015. "Linking FDI Inflows to Economic Growth in North African Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 6(1), pages 90-104, March.
    4. Rajul Awasthi & Nihal Bayraktar, 2015. "Can tax simplification help lower tax corruption?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 297-330, December.
    5. Asad Zaman & null Faiz-Ur-Rahim, 2009. "Corruption: measuring the unmeasurable," Humanomics: The International Journal of Systems and Ethics, Emerald Group Publishing, vol. 25(2), pages 117-126, May.
    6. Ricardo Montero & Gustavo Yamada, . "Exclusión y discriminación étnica en los servicios públicos en el Perú," Chapters of Books,in: Francisco Galarza (ed.), Discriminación en el Perú: Exploraciones en el Estado, la empresa y el mercado laboral., edition 1, volume 1, chapter 5, pages 219-278 Fondo Editorial, Universidad del Pacífico.
    7. Börner, Kira Astrid, 2005. "Political Institutions and Incentives for Economic Reforms," Munich Dissertations in Economics 3165, University of Munich, Department of Economics.
    8. Tudorel Andrei & Ani Matei & Stelian Stancu & Bogdan Oancea, 2009. "Some notes about decentralization process implications on public administration corruption in romania," Prague Economic Papers, University of Economics, Prague, vol. 2009(1), pages 26-37.
    9. Anwar Shah, 2006. "Corruption and Decentralized Public Governance," Chapters,in: Handbook of Fiscal Federalism, chapter 19 Edward Elgar Publishing.
    10. Ralph Chami & Connel Fullenkamp, 2002. "Trust As a Means of Improving Corporate Governance and Efficiency," IMF Working Papers 02/33, International Monetary Fund.
    11. Teodorescu, Daniel & Andrei, Tudorel & Rosca, Ion Gh. & Profiroiu, Marius & Turtureanu, Mihai, 2007. "Local Governance and Corruption of a Country in the Process of Joining the European Union," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 4(4), pages 49-60, December.
    12. Tudorel ANDREI & Ani MATEI & Ion Gh. ROSCA, 2009. "The Corruption - An Economic and Social Analysis," Economics Books, The Economica Publishing House, edition 1, volume 1, number 03.
    13. Ben Ali Mohamed Sami & Sassi Seifallah, 2016. "The corruption-inflation nexus: evidence from developed and developing countries," The B.E. Journal of Macroeconomics, De Gruyter, vol. 16(1), pages 125-144, January.
    14. repec:ipg:wpaper:2014-558 is not listed on IDEAS
    15. Peyton, Kyle & Belasen, Ariel, 2010. "The case for human development: a cross-country analysis of corruption perceptions," MPRA Paper 31385, University Library of Munich, Germany.

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