Corruption, Regulation, and Growth: An Empirical Study of the United States

24 Pages Posted: 19 Jul 2013 Last revised: 17 Sep 2013

See all articles by Noel D. Johnson

Noel D. Johnson

George Mason University - Department of Economics; George Mason University - Mercatus Center

William P. Ruger

Texas State University, San Marcos

Jason Sorens

Dartmouth College - Department of Government

Steven Yamarik

California State University, Long Beach - Department of Economics; Henan University

Date Written: July 17, 2013

Abstract

This paper investigates whether the costs of corruption are conditional on the extent of government intervention in the economy. We use data on corruption convictions and economic growth between 1975 and 2007 across the U.S. states to test this hypothesis. Although no state approaches the level of government intervention found in many developing countries, we still find evidence for the "weak" form of the grease-the-wheels hypothesis. While corruption is never good for growth, its harmful effects are smaller in states with more regulation.

Keywords: Corruption, U.S. States, Growth, Regulation

JEL Classification: K4, O1, H7, H0, D7

Suggested Citation

Johnson, Noel D. and Ruger, William P. and Sorens, Jason and Yamarik, Steven, Corruption, Regulation, and Growth: An Empirical Study of the United States (July 17, 2013). Economics of Governance, Forthcoming, GMU Working Paper in Economics No. 13-21, Available at SSRN: https://ssrn.com/abstract=2294938 or http://dx.doi.org/10.2139/ssrn.2294938

Noel D. Johnson (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

George Mason University - Mercatus Center

3434 Washington Blvd., 4th Floor
Arlington, VA 22201
United States

William P. Ruger

Texas State University, San Marcos ( email )

601 University Drive
San Marcos, TX 78666-4616
United States

Jason Sorens

Dartmouth College - Department of Government ( email )

Hanover, NH
United States

Steven Yamarik

California State University, Long Beach - Department of Economics ( email )

1250 Bellflower Blvd
Long Beach, CA 90840-4607
United States

HOME PAGE: http://www.csulb.edu/~syamarik

Henan University ( email )

85 Minglun St. Shunhe
Kaifeng, Henan 475001
China

HOME PAGE: http://cfds.henuecon.education/index.php/research/data/yes-capital-data

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
124
Abstract Views
762
rank
256,260
PlumX Metrics