Abstract
The article examines the corruption-growth relationship in a non-linear framework using panel fixed effects (FE) and system generalized methods of moments (SGMM) model for over 110 countries for the period 1984-2009. The results reveal that the least corrupt countries enjoy higher growth rates, whereas highly corrupt countries experience low growth. Furthermore, corruption has a positive and significant effect on economic growth up to a certain level and thereafter it reduces growth. The results are robust under various methodology and an alternative measure of corruption. JEL Classification: D73, O47, O50.
| Original language | English |
|---|---|
| Pages (from-to) | 178-193 |
| Number of pages | 16 |
| Journal | South Asian Journal of Macroeconomics and Public Finance |
| Volume | 6 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Dec 2017 |
Bibliographical note
Publisher Copyright:© 2017, © 2017 SAGE Publications.
Keywords
- corruption
- growth