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Corruption and Infrastructure at the Country and Regional Level

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  • Gillanders, Robert

Abstract

This paper examines the relationship between corruption and infrastructure at both the country and regional level using the World Bank’s Enterprise Surveys data. A statistically significant and considerable relationship is established between the measure of corruption in the macro data and the measures of transportation and electricity infrastructure. Countries with more corruption tend to have worse infrastructure in the eyes of their firms. This link is shown to remain when one uses other measures of corruption and after controlling for GDP per capita, institutional quality and land area. At the regional level, the key result is unchanged. The magnitude and significance of this result is shown to vary by global region. Two stage least squares results, using distance from the equator as an instrument at the macro level support the simple OLS results and allow us to have some confidence that the causality runs from corruption to infrastructure. Finally, it is shown that within country variation in corruption has a significant effect on regional infrastructure.

Suggested Citation

  • Gillanders, Robert, 2013. "Corruption and Infrastructure at the Country and Regional Level," MPRA Paper 46679, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:46679
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    References listed on IDEAS

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    Cited by:

    1. Steve Billon & Robert Gillanders, 2016. "State ownership and corruption," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 23(6), pages 1074-1092, December.
    2. Keita Kouramoudou, 2017. "Does Corruption Affect Total Factor Productivity? An Empirical Analysis," Working Papers 1714, University of Tampere, School of Management, Economics.
    3. Gillanders, Robert & Parviainen, Sinikka, 2014. "Experts’ Perceptions versus Firms’ Experiences of Corruption and Foreign Direct Investment," MPRA Paper 58991, University Library of Munich, Germany.
    4. Michael Breen & Robert Gillanders & Gemma Mcnulty & Akisato Suzuki, 2017. "Gender and Corruption in Business," Journal of Development Studies, Taylor & Francis Journals, vol. 53(9), pages 1486-1501, September.
    5. repec:eee:ecanpo:v:55:y:2017:i:c:p:90-105 is not listed on IDEAS
    6. Gillanders, Robert & Parviainen, Sinikka, 2015. "Corruption and the Shadow Economy at the Regional Level," MPRA Paper 64510, University Library of Munich, Germany.

    More about this item

    Keywords

    Corruption; infrastructure; cross country; regional variation;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure

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