The Economic Effect of Corruption in Italy: A Regional Panel Analysis

Regional Studies, 51(9): 1387-1398, 2017, DOI: 10.1080/00343404.2016.1184244

Posted: 23 Feb 2015 Last revised: 30 Oct 2017

See all articles by Maurizio Lisciandra

Maurizio Lisciandra

University of Messina - Department of Economics

Emanuele Millemaci

University of Messina - Department of Economics

Abstract

This paper provides a within-country analysis of the impact of corruption on economic growth using a panel of Italian regions from 1968 to 2011 through a robust measure of corruption. This measure is averaged over five-year periods to reduce short-run fluctuations and probable delayed effects. The results show a significant negative impact of corruption on long-term growth in all specifications, both on average and for each Italian region. As a consequence, a zero level of corruption is growth maximizing. This effect is non-linear such that the negative impact of corruption on growth becomes less intense as corruption increases.

Keywords: corruption, economic growth, cross-regional analysis, dynamic panel data.

JEL Classification: D73; K4; O10; R11.

Suggested Citation

Lisciandra, Maurizio and Millemaci, Emanuele, The Economic Effect of Corruption in Italy: A Regional Panel Analysis. Regional Studies, 51(9): 1387-1398, 2017, DOI: 10.1080/00343404.2016.1184244, Available at SSRN: https://ssrn.com/abstract=2568136 or http://dx.doi.org/10.2139/ssrn.2568136

Maurizio Lisciandra (Contact Author)

University of Messina - Department of Economics ( email )

Piazza Pugliatti 1
Messina, 98122
Italy
+39 (0)906764620 (Phone)

HOME PAGE: http://https://sites.google.com/site/mlisciandra/

Emanuele Millemaci

University of Messina - Department of Economics ( email )

Piazza Pugliatti, 1
Messina, Messina 98122
Italy

HOME PAGE: http://https://sites.google.com/site/emillemaci/

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