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Ease of Doing Business: Emphasis on Corruption and Rule of Law

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  • Karama, Dalal

Abstract

The rule of law is often treated as a major contributor to growth in the most developed countries and corruption as a contributor to growth in the least developed countries. What is most important is to analyze the facts to determine the degree to which rule of law and corruption influence; 1.) Growth and 2.) Ease of doing business. Three issues are addressed: 1.) Types of externalities, 2.) Effect of corruption and rule of law on ease of doing business, and 3.) How corruption and rule of law influence gdp growth and gdp per capita. Should policy makers focus their efforts on providing incentives to reduce and/or eliminate corruption or on providing incentives to legislate and implement rules and regulations that enforce rule of law? Due to the limitation of data, the observed outcomes in this study leaves the results open to diverse interpretation and further examination and research.

Suggested Citation

  • Karama, Dalal, 2014. "Ease of Doing Business: Emphasis on Corruption and Rule of Law," MPRA Paper 58662, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:58662
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    Cited by:

    1. Nageri Kamaldeen Ibraheem & Gunu Umar, 2020. "Corruption and Ease of Doing Business: Evidence from ECOWAS," Acta Universitatis Sapientiae, Economics and Business, Sciendo, vol. 8(1), pages 19-37, October.

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    More about this item

    Keywords

    Ease of doing business; corruption; rule of law; gdp growth; gdp per capita;
    All these keywords.

    JEL classification:

    • A1 - General Economics and Teaching - - General Economics
    • F62 - International Economics - - Economic Impacts of Globalization - - - Macroeconomic Impacts
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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