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Growth and Development Under Alternative Corruption Regimes

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  • Keith Blackburn
  • Yuanyuan Wang

Abstract

Empirical observation suggests that not all countries of the world have suffered as a result of widespread corruption. Whilst many countries have undoubtedly been damaged considerably, others appear to have coped well - in some cases, very well - with the problem. The analysis that follows seeks to provide an explanation for this puzzle. It does so by differentiating alternative types of corruption regime according to the way that corruption is practised. Speci?cally, we distinguish between organised and disorganised, collusive and non collusive corruption. This gives four possible scenarios, the implications of which are compared and contrasted to provide a ranking of regimes in terms of their impact on growth. We ?nd that the least (most) damaging regime is one in which corruption is both organised and collusive (disorganised and non-collusive), as broadly characterises the situation in China and its fast-growing neighbours (many African countries).

Suggested Citation

  • Keith Blackburn & Yuanyuan Wang, 2010. "Growth and Development Under Alternative Corruption Regimes," Centre for Growth and Business Cycle Research Discussion Paper Series 137, Economics, The Univeristy of Manchester.
  • Handle: RePEc:man:cgbcrp:137
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    File URL: http://hummedia.manchester.ac.uk/schools/soss/cgbcr/discussionpapers/dpcgbcr137.pdf
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    References listed on IDEAS

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    1. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2006. "Financial Liberalisation, Bureaucratic Corruption and Economic," Proceedings of the German Development Economics Conference, Berlin 2006 8, Verein für Socialpolitik, Research Committee Development Economics.
    2. Foellmi, Reto & Oechslin, Manuel, 2007. "Who gains from non-collusive corruption?," Journal of Development Economics, Elsevier, vol. 82(1), pages 95-119, January.
    3. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2009. "Why is corruption less harmful in some countries than in others?," Journal of Economic Behavior & Organization, Elsevier, vol. 72(3), pages 797-810, December.
    4. Isaac Ehrlich & Francis T. Lui, 1999. "Bureaucratic Corruption and Endogenous Economic Growth," Journal of Political Economy, University of Chicago Press, vol. 107(S6), pages 270-293, December.
    5. Blackburn, Keith & Forgues-Puccio, Gonzalo F., 2007. "Distribution and development in a model of misgovernance," European Economic Review, Elsevier, vol. 51(6), pages 1534-1563, August.
    6. Paldam, Martin, 2002. "The cross-country pattern of corruption: economics, culture and the seesaw dynamics," European Journal of Political Economy, Elsevier, vol. 18(2), pages 215-240, June.
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