Abstract

http://ssrn.com/abstract=882360
 
 

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Does Corruption Affect Income Inequality and Poverty?


Sanjeev Gupta


International Monetary Fund (IMF) - Fiscal Affairs Department

Hamid R. Davoodi


International Monetary Fund (IMF) - Fiscal Affairs Department

Rosa Alonso-Terme


University of the Philippines, Diliman

May 1998

IMF Working Paper No. 98/76

Abstract:     
This paper demonstrates that high and rising corruption increases income inequality and poverty by reducing economic growth, the progressivity of the tax system, the level and effectiveness of social spending, and the formation of human capital, and by perpetuating an unequal distribution of asset ownership and unequal access to education. These findings hold for countries with different growth experiences, at different stages of development, and using various indices of corruption. An important implication of these results is that policies that reduce corruption will also lower income inequality and poverty.

Number of Pages in PDF File: 41

Keywords: Corruption, income inequality, poverty

JEL Classification: D73, D31, I32

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Date posted: February 15, 2006  

Suggested Citation

Gupta, Sanjeev and Davoodi, Hamid R. and Alonso-Terme, Rosa, Does Corruption Affect Income Inequality and Poverty? (May 1998). IMF Working Paper, Vol. , pp. 1-41, 1998. Available at SSRN: http://ssrn.com/abstract=882360

Contact Information

Sanjeev Gupta (Contact Author)
International Monetary Fund (IMF) - Fiscal Affairs Department ( email )
700 19th Street, NW
Washington, DC 20431
United States
Hamid R. Davoodi
International Monetary Fund (IMF) - Fiscal Affairs Department ( email )
700 19th Street, NW
Washington, DC 20431
United States
Rosa Alonso-Terme
University of the Philippines, Diliman
Asian Center, Romulo Hall
Magsaysay corner Guerrero Sts.
U.P. Diliman, Quezon City, 1100
Philippines
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