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

34 Pages Posted: 6 Dec 2010

See all articles by Nauro F. Campos

Nauro F. Campos

University College London; 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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Date Written: December 2010

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. We find that 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), authorsÂ’ 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: O2

Suggested Citation

Campos, Nauro F. and Dimova, Ralitza D. and Saleh, Ahmad, Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth (December 2010). CEPR Discussion Paper No. DP8140, Available at SSRN: https://ssrn.com/abstract=1718935

Nauro F. Campos (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
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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