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Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth

Author

Listed:
  • Campos, Nauro F

    () (Brunel University)

  • Dimova, Ralitza

    () (University of Manchester)

  • Saleh, Ahmad

    () (Brunel University)

Abstract

Does corruption grease or sand the wheels of economic growth? This paper uses meta-analysis techniques to systematically evaluate the evidence addressing this question. It uses a data set comprising 460 estimates of the effect of corruption on growth from 41 empirical studies. The main factors explaining the variation in these estimates are whether the model accounts for institutions and trade openness (both are found to deflate the negative effect of corruption), authors' affiliation (academics systematically report less negative impacts), and use of fixed-effects. We also find that publication bias, albeit somewhat acute, does not eliminate the genuine negative effect of corruption on economic growth.

Suggested Citation

  • Campos, Nauro F & Dimova, Ralitza & Saleh, Ahmad, 2010. "Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth," IZA Discussion Papers 5334, Institute for the Study of Labor (IZA).
  • Handle: RePEc:iza:izadps:dp5334
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    References listed on IDEAS

    as
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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Corrupt politicians
      by René Böheim in Econ Tidbits on 2013-01-15 18:53:00

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    Cited by:

    1. Spyridon Boikos, 2013. "Corruption, Public Expenditure, and Human Capital Accumulation," Working Paper series 17_13, Rimini Centre for Economic Analysis.
    2. Nikita Zakharov, 2017. "Does Corruption Hinder Investment? Evidence from Russian Regions," Discussion Paper Series 33, Department of International Economic Policy, University of Freiburg, revised Feb 2017.
    3. repec:pdn:wpaper:67 is not listed on IDEAS
    4. d'Agostino, G. & Dunne, J.P. & Pieroni, L., 2016. "Corruption and growth in Africa," European Journal of Political Economy, Elsevier, vol. 43(C), pages 71-88.
    5. Nasrudin, Rus'an, 2015. "Does Soft Corruption Make Grease or Sand for Development? Evidence from Road's Special Allocation Fund for Indonesian Districts," MPRA Paper 80578, University Library of Munich, Germany, revised 08 Aug 2017.
    6. David N Margolis, 2014. "By Choice and by Necessity: Entrepreneurship and Self-Employment in the Developing World," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 26(4), pages 419-436, September.
    7. Cuervo-Cazurra, Alvaro, 2016. "Corruption in international business," Journal of World Business, Elsevier, vol. 51(1), pages 35-49.
    8. repec:ksp:journ2:v:4:y:2017:i:1:p:19-54 is not listed on IDEAS
    9. Eugen Dimant & Tim Krieger & Daniel Meierrieks, 2013. "The effect of corruption on migration,1985--2000," Applied Economics Letters, Taylor & Francis Journals, vol. 20(13), pages 1270-1274, September.
    10. Anna Kochanova, 2012. "The Impact of Bribery on Firm Performance: Evidence from Central and Eastern European Countries," CERGE-EI Working Papers wp473, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    11. André Seidel & Marcel Thum, 2016. "Tax Evasion, Corruption and Market Entry," Scottish Journal of Political Economy, Scottish Economic Society, vol. 63(4), pages 377-398, September.
    12. Odilova, Shoirahon, 2016. "Patent protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 70842, University Library of Munich, Germany.
    13. Marcus Dejardin & Helene Laurent, 2014. "Greasing the wheels of entrepreneurship? A complement according to entrepreneurial motives," Working Papers 1402, University of Namur, Department of Economics.
    14. Hanousek, Jan & Kochanova, Anna, 2015. "Bribery Environment and Firm Performance: Evidence from Central and Eastern European Countries," CEPR Discussion Papers 10499, C.E.P.R. Discussion Papers.
    15. Raffaella Coppier & Mauro Costantini & Gustavo Piga, 2013. "The Role Of Monitoring Of Corruption In A Simple Endogenous Growth Model," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 1972-1985, October.
    16. Breen, Michael & Gillanders, Robert, 2017. "Does Corruption Ease the Burden of Regulation? National and Subnational Evidence," MPRA Paper 82088, University Library of Munich, Germany.
    17. Hodler, Roland & Dreher, Axel, 2013. "Development (paradigm) failures," Journal of Development Economics, Elsevier, vol. 101(C), pages 63-74.
    18. Axel Dreher & Martin Gassebner, 2013. "Greasing the wheels? The impact of regulations and corruption on firm entry," Public Choice, Springer, vol. 155(3), pages 413-432, June.
    19. Roland Craigwell & Allan Wright, 2011. "Foreign direct investment and corruption in developing economies: Evidence from linear and non-linear panel Granger causality tests," Economics Bulletin, AccessEcon, vol. 31(3), pages 2272-2283.
    20. Odilova, Shoirahon & Xiaomin, Gu, 2016. "IPR protection, intelligence and economic growth: a cross-country empirical investigation," MPRA Paper 71226, University Library of Munich, Germany.
    21. Maksim Belitski & Farzana Chowdhury & Sameeksha Desai, 2016. "Taxes, corruption, and entry," Small Business Economics, Springer, vol. 47(1), pages 201-216, June.
    22. Craigwell, Roland & Wright, Allan S, 2011. "Foreign Direct Investment and Corruption in Developing Economies: Evidence form Linear and Non-Linear Panel Causality Tests," MPRA Paper 40933, University Library of Munich, Germany.
    23. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
      [Consequences of Corruption : Empirical survey]
      ," MPRA Paper 41482, University Library of Munich, Germany.

    More about this item

    Keywords

    economic growth; meta-regression analysis; corruption;

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development

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