The Role of Monitoring of Corruption in a Simple Endogenous Growth Model

14 Pages Posted: 24 Aug 2013

See all articles by Raffaella Coppier

Raffaella Coppier

Università degli Studi di Macerata - Department of Economic & Financial Institutions (DIEF)

Mauro Costantini

ISAE, Istituto di Studi e Analisi Economica

Gustavo Piga

University of Rome

Date Written: October 2013

Abstract

This article analyzes the relationship between economic growth and the monitoring of corruption. In our theoretical model, we derive a nonlinear relationship between the level of monitoring and economic growth, as well as between corruption and economic growth. At low monitoring levels, the economy experiences widespread corruption and medium growth rates, whereas no corruption occurs at intermediate monitoring levels, but low growth rates are recorded. At high monitoring levels, no corruption takes place and high growth rates are observed. The model is estimated using a dynamic panel data approach for Italy. Empirical results support the theoretical model.

JEL Classification: C33, D73, K42

Suggested Citation

Coppier, Raffaella and Costantini, Mauro and Piga, Gustavo, The Role of Monitoring of Corruption in a Simple Endogenous Growth Model (October 2013). Economic Inquiry, Vol. 51, Issue 4, pp. 1972-1985, 2013. Available at SSRN: https://ssrn.com/abstract=2315402 or http://dx.doi.org/10.1111/ecin.12007

Raffaella Coppier (Contact Author)

Università degli Studi di Macerata - Department of Economic & Financial Institutions (DIEF) ( email )

Via Crescimbeni 20
Macerata 62100
Italy

Mauro Costantini

ISAE, Istituto di Studi e Analisi Economica ( email )

Piazza dell' Indipendenza 4
I-00185
Italy

Gustavo Piga

University of Rome ( email )

Via di Tor Vergata
Rome, Lazio
Italy

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