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  • Latín American Journal of Economics
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  • Pontificia Universidad Católica de Chile
  • Latín American Journal of Economics
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DOES CORRUPTION AFFECT ECONOMIC GROWTH?

Author
AHMAD,EATZAZ

ULLAH,MUHAMMAD AMAN

ARFEEN,MUHAMMAD IRFANULLAH

Full text
https://scielo.conicyt.cl/scielo.php?script=sci_arttext&pid=S0719-04332012000200005
Abstract
Using panel data from the International Country Risk Guide corruption index, institutional quality and political stability indices and several state variables for developed and developing countries, this paper explores the linear quadratic empirical relationship between corruption and economic growth. Empirical literature has shown a linear relationship between corruption and economic growth but hasn't differentiated between growth-enhancing and growth-reducing levels of corruption. An analysis based on the generalized method of moments estimation shows that a decrease in corruption raises the economic growth rate in an inverted U-shaped way. This result is robust with respect to alternative specifications of the econometric relationship.
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Discipline
Artes, Arquitectura y UrbanismoCiencias Agrarias, Forestales y VeterinariasCiencias Exactas y NaturalesCiencias SocialesDerechoEconomía y AdministraciónFilosofía y HumanidadesIngenieríaMedicinaMultidisciplinarias
Institutions
Universidad de ChileUniversidad Católica de ChileUniversidad de Santiago de ChileUniversidad de ConcepciónUniversidad Austral de ChileUniversidad Católica de ValparaísoUniversidad del Bio BioUniversidad de ValparaísoUniversidad Católica del Nortemore

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