Does corruption facilitate growth? A cross-national study in a non-linear framework

Saha, Shrabani and Mallik, Girijashankar and Vortelinos, Dimitrios (2017) Does corruption facilitate growth? A cross-national study in a non-linear framework. South Asian Journal of Macroeconomics and Public Finance, 6 (2). pp. 178-193. ISSN 2277-9787

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Item Type:Article
Item Status:Live Archive

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.

Keywords:Corruption Economic aspects, Economic growth, Non-linear framework
Subjects:N Business and Administrative studies > N120 International Business studies
Divisions:Lincoln International Business School
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ID Code:25851
Deposited On:19 Jan 2017 08:48

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