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Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth

33 Pages Posted: 29 Nov 2010  

Nauro F. Campos

Brunel University London - Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute; IZA Institute of Labor Economics

Ralitza D. Dimova

Brunel University London - Economics and Finance; IZA Institute of Labor Economics

Ahmad Saleh

Brunel University London

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Abstract

Does corruption grease or sand the wheels of economic growth? This paper uses meta-analysis techniques to systematically evaluate the evidence addressing this question. It uses a data set comprising 460 estimates of the effect of corruption on growth from 41 empirical studies. The main factors explaining the variation in these estimates are whether the model accounts for institutions and trade openness (both are found to deflate the negative effect of corruption), authors' affiliation (academics systematically report less negative impacts), and use of fixed-effects. We also find that publication bias, albeit somewhat acute, does not eliminate the genuine negative effect of corruption on economic growth.

Keywords: corruption, economic growth, meta-regression analysis

JEL Classification: O1

Suggested Citation

Campos, Nauro F. and Dimova, Ralitza D. and Saleh, Ahmad, Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth. IZA Discussion Paper No. 5334. Available at SSRN: https://ssrn.com/abstract=1716129

Nauro F. Campos (Contact Author)

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Ralitza D. Dimova

Brunel University London - Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom

IZA Institute of Labor Economics

Schaumburg-Lippe-Str. 7 / 9
Bonn, D-53072
Germany

Ahmad Saleh

Brunel University London ( email )

Kingston Lane
Uxbridge, Middlesex UB8 3PH
United Kingdom

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