Exploring the links between corruption and growth

Hodge, Andrew, Shankar, Sriram, Rao, D. S. Prasada and Duhs, Alan (2011) Exploring the links between corruption and growth. Review of Development Economics, 15 3: 474-490. doi:10.1111/j.1467-9361.2011.00621.x

Author Hodge, Andrew
Shankar, Sriram
Rao, D. S. Prasada
Duhs, Alan
Title Exploring the links between corruption and growth
Journal name Review of Development Economics   Check publisher's open access policy
ISSN 1363-6669
Publication date 2011-08-01
Sub-type Article (original research)
DOI 10.1111/j.1467-9361.2011.00621.x
Volume 15
Issue 3
Start page 474
End page 490
Total pages 17
Place of publication Oxford, United Kingdom
Publisher Wiley-Blackwell Publishing
Language eng
Abstract This paper models the transmission channels through which corruption indirectly affects growth. Results suggest that corruption hinders growth through its adverse effects on investment, human capital, and political instability, while fostering growth by reducing government consumption and, less robustly, increasing trade openness. Overall, a total negative effect of corruption on growth is estimated from these channels. These effects are found to be robust to modifications in model specification, sample coverage, and estimation techniques as well as tests for model exhaustiveness. The negative effect of corruption on growth is found to diminish in economies with low governance levels or a high degree of regulation. No one-size-fits-all policy response appears supportable.
Keyword Economic-growth
Trade liberalisation
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Official 2012 Collection
School of Economics Publications
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Citation counts: TR Web of Science Citation Count  Cited 9 times in Thomson Reuters Web of Science Article | Citations
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Created: Tue, 04 Oct 2011, 23:39:44 EST by Dr Andrew Hodge on behalf of School of Economics