Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5068515 | European Journal of Political Economy | 2006 | 17 Pages |
Abstract
This paper studies the effects of corruption on long-run growth incorporating measures of political freedom as a key determinant of the relationship. Unlike previous empirical studies, we find evidence of a non-monotonic relationship between corruption and growth after controlling for several other economic variables and restricting the sample to those countries considered to be free. Our results indicate that the growth-maximizing level of corruption is significantly greater than zero, with corruption beneficial for economic growth at low levels of incidence and detrimental at high levels of incidence.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Fabio MĂ©ndez, Facundo SepĂșlveda,