Corruption Centralization, Investments, and Growth: Analysis of 62 countries for 1995-2007

• Guych Nuryyev ^[1] ; Charles Hickson ^[2]
  1. [1] I-Shou Unirsity,
  2. [2] Charles Hickson b a Queen’s University Belfast, UK.
• Localización: Applied econometrics and international development, ISSN 1578-4487, Vol. 15, Nº. 1, 2015, págs. 17-30
• Idioma: inglés
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• Resumen

  • The main topic of this study is the centralization of corrupt activities among public officials. The authors develop a measure of corruption centralization, categorize countries with relatively high corruption into three groups based on this measure, and discuss its effect on investments and growth. The analysis suggests that decentralized corruption has an especially destructive effect on investments. The paper also revisits the relationship between corruption and economic growth. The results of this reconsideration confirm the negative effect of corruption on development and demonstrate endogeneity between corruption and growth. The panel data used in the analysis include approximately five dozen countries studied over a period of more than a decade.