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The Economic Effect of Corruption in Italy: A Regional Panel Analysis

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  • Lisciandra, Maurizio
  • Millemaci, Emanuele

Abstract

This paper provides a within-country analysis of the impact of corruption on economic growth using a panel of Italian regions from 1968 to 2011 through a robust measure of corruption. This measure is averaged over 5-year periods to reduce short-run fluctuations and to reduce probable delayed effects, which are typical for latent phenomena such as corruption. The results show a significant negative impact of corruption on long-term growth in all specifications, both on average and for each Italian region. As a consequence, a zero-level of corruption is growth maximizing. This effect is non-linear such that the negative impact of corruption on growth becomes less intense as corruption increases.

Suggested Citation

  • Lisciandra, Maurizio & Millemaci, Emanuele, 2015. "The Economic Effect of Corruption in Italy: A Regional Panel Analysis," MPRA Paper 62173, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:62173
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    Cited by:

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    2. Giuseppe Attanasi & Alessandro Bucciol & Simona Cicognani & Natalia Montinari, 2017. "The Italian North-South Divide in Perceived Dishonesty: A Matter of Trust?," Working Papers of BETA 2017-32, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    3. Blaise Gnimassoun, Joseph Keneck Massil, 2019. "Determinants of corruption: can we put all countries in the same basket?," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 16(2), pages 239-276, December.
    4. Calcagnini, Giorgio & Marin, Giovanni & Perugini, Francesco, 2021. "Labour flexibility, internal migration and productivity in Italian regions," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 308-320.

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    More about this item

    Keywords

    corruption; economic growth; cross-regional analysis; dynamic panel data;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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