Corruption, growth and political regimes: Cross country evidence

Fabio Méndez; Facundo Sepúlveda

doi:10.1016/j.ejpoleco.2005.04.005

Corruption, growth and political regimes: Cross country evidence

Fabio Méndez^*, Facundo Sepúlveda

^*Corresponding author for this work

Research output: Contribution to journal › Article › peer-review

284 Citations (Scopus)

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 and growth after controlling for several other economic variables and 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 and detrimental at high levels of incidence.

Original language	English
Pages (from-to)	82-98
Number of pages	17
Journal	European Journal of Political Economy
Volume	22
Issue number	1
DOIs	https://doi.org/10.1016/j.ejpoleco.2005.04.005
Publication status	Published - Mar 2006

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title = "Corruption, growth and political regimes: Cross country evidence",

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 and growth after controlling for several other economic variables and 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 and detrimental at high levels of incidence.",

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JO - European Journal of Political Economy

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Corruption, growth and political regimes: Cross country evidence

Abstract

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