Institutions, Corruption and Sustainable Development

Economics Bulletin, Vol. 33 No. 4, pp. 2545-2562, 2013

18 Pages Posted: 16 Oct 2013

See all articles by Bertrand Venard

Bertrand Venard

Audencia Nantes School of Management

Date Written: October 8, 2013

Abstract

This paper aims to analyze the relationship between institutional quality, corruption level, and economic development. The methodology makes use of cross-national data developed by the World Bank on perceived levels of corruption, institutional framework quality and economic development to test various hypotheses. The added value of this paper is thus to investigate the impact of both institutional framework quality and corruption on economic development. A significant addition to the literature is made by using genuine wealth growth per capita as a proxy for economic development, rather than GDP growth per capita. One other original contribution is the application of the rarely used PLS (Partial Least Squares) structural equation modelling to evaluate the proposed scheme. This empirical research supports the ‘sand in the wheel’ school of thought in relation to the effects of corruption on economic development.

Keywords: Corruption, Bribery, Institutions, Economic Development, Sustainable Economic Development.

JEL Classification: H8, O1.

Suggested Citation

Venard, Bertrand, Institutions, Corruption and Sustainable Development (October 8, 2013). Economics Bulletin, Vol. 33 No. 4, pp. 2545-2562, 2013, Available at SSRN: https://ssrn.com/abstract=2340885

Bertrand Venard (Contact Author)

Audencia Nantes School of Management ( email )

8 route de la Jonelière, BP 31222
Nantes Cedex 3, Cedex 3 44312
France

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