Arbeitspapier

Corruption and economic growth: Does the size of the government matter?

Corruption is often a source of contentious debate, covering different areas of knowledge, such as philosophy and sociology. In this paper we assess the effects of corruption on economic activity and highlight the relevance of the size of the government. We use dynamic models and the Generalized Method of Moments (GMM) approach for a panel of 48 countries, from 2012 to 2019. We find an adverse effect of corruption on the level and growth of GDP per capita, but that large governments benefit less from reducing corruption. Furthermore, developing economies, regardless of government size, benefit less from reducing corruption, while government size is not sufficient to explain the influence of corruption on economic activity, although the level of effectiveness of public services is crucial. Finally, our findings suggest that private investment is a potential transmission channel for corruption.

Sprache
Englisch

Erschienen in
Series: EconPol Working Paper ; No. 60

Klassifikation
Wirtschaft
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Economic Growth and Aggregate Productivity: General
Illegal Behavior and the Enforcement of Law
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Thema
Corruption
Economic Growth
Government Size
Generalized Method of Moments
Forward Orthogonal Deviations

Ereignis
Geistige Schöpfung
(wer)
Afonso, António
Rodrigues, Eduardo de Sá Fortes Leitão
Ereignis
Veröffentlichung
(wer)
ifo Institute - Leibniz Institute for Economic Research at the University of Munich
(wo)
Munich
(wann)
2021

Handle
Letzte Aktualisierung
20.09.2024, 08:21 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Afonso, António
  • Rodrigues, Eduardo de Sá Fortes Leitão
  • ifo Institute - Leibniz Institute for Economic Research at the University of Munich

Entstanden

  • 2021

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