Corruption, Growth and Political Regimes: Cross Country Evidence

In: European journal of political economy, Band 22, Heft 1, S. 82-98

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 & growth after controlling for several other economic variables & 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 & detrimental at high levels of incidence. Tables, Appendixes, References. [Copyright 2005 Elsevier B.V.]