Control of corruption, international investment, and economic growth – Evidence from panel data

Cieślik, Andrzej; Goczek, Łukasz

doi:10.1016/j.worlddev.2017.10.028

Cited by 189 publications

(135 citation statements)

References 42 publications

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“…The results are consistent with findings of the previous studies, i.e. Cieślik and Goczek, 2018;Hongdao et al, 2018;Dutta et al, 2017;Saha and Ali, 2017;Gyimah-Brempong and de Gyimah-Brempong, 2006;Gyimah-Brempong, 2002;Tanzi & Davoodi, 2002;Mo, 2001;and Mauro, 1995 . Moreover; for control variables, the results show that FDI is significant in column (1) and (3); however, it becomes insignificant in columns (2) and (4). Similarly, the variables human capital and global infrastructure are significant in all the equations.…”

Section: Resultssupporting

confidence: 91%

Does public debt stifle economic growth and increase income inequality in Belt & Road countries? The Role of Corruption

2019

EJBM

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This study seeks to investigate the role of corruption in the relationship between public debt and economic growth in Belt & Road countries during 1996-2017 by applying the generalized method of moment (GMM). Using grouped and ungrouped samples; the results reveal that public debt plays a significant and negative role in economic growth. Corruption also plays a significant and negative role in economic growth. The interaction terms of public debt and corruption play a significant and negative role in economic growth. Moreover; several robustness checks like fixed and random effect models also confirm the results of the GMM approach. The inclusion of more control variables also confirms the baseline estimation. The impact of Belt & Road initiative on economic growth is significantly positive. Several policy recommendations can be drawn from this study. The reduction of the adverse effect of public debt and improvement in economic growth can be brought by applying measures that curb corruption and enhance economic collaboration with other economies.

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Section: Resultssupporting

confidence: 91%

Does public debt stifle economic growth and increase income inequality in Belt & Road countries? The Role of Corruption

2019

EJBM

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“…These new results are in Table 3. CD statistics do not reject the null hypothesis of independence between cross-sections 1 The CP measures the anti-corruption efforts of one country relative to other countries ranging from 0 to 100. For more details about this index see [23].…”

Section: Resultsmentioning

confidence: 93%

“…In the first stream, the results found in [1] suggest that corruption directly hinders economic growth, making investment difficult. The authors use an open economy version of the endogenous growth model with international capital mobility.…”

Section: Corruption and Growthmentioning

confidence: 99%

“…The variables are corruption control (cp) 1 , also used in [1] [42], real GDP per capita (2010 US dollars), and economic freedom index. The former two are collected from the World Bank, and the latter is collected from the Fraser Institute 2 .…”

Section: Datamentioning

confidence: 99%

“…This phenomenon diverts part of the available resources for investment, generating both inefficiency and waste in public spending. According to [1], corruption has negative effects on a nation's wealth and economic growth, discouraging new investments and creating uncertainty over private and social rights. This uncertainty acts as a cost on entrepreneurship, decreasing return on investment and increasing its variation, which discourages investment activities.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

Leite¹,

Lúcio²,

Ferreira³

2019

TEL

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Theoretical models and empirical evidence show that corruption control and economic openness have effects on economic growth. This paper aims to estimate the long-term effects of the anti-corruption effort and economic freedom on economic growth in a sample of 121 countries. We use autoregressive distributed lag (ARDL) models and estimation techniques appropriate to the case where there is a correlation between cross-section errors possibly generated by spillover effects. Besides, estimates of ARDL models are consistent even with endogenous regressors and integrated variables. The results indicate that economic growth of a country can be positively and significantly affected by the long-term corruption control and economic freedom.

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How the country context shapes firms' competitive repertoire complexity

Steinberg

Hennig

Oehmichen

et al. 2022

Global Strategy Journal

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Research SummaryRecent research has shown that firms' ability to employ complex competitive repertoires can create long‐term competitive advantages. Since research on its determinants has focused on the firm level, we lack an understanding of how country‐level factors impact firms' implementation of complex competitive repertoires. Our cross‐country study addresses this gap by integrating a model of country‐level competitiveness factors with insights from the literature on competitive dynamics and portable governance. We argue that a country context with high‐quality competitiveness factors enables firms to implement complex competitive repertoires. In addition, we hypothesize that firms with foreign investors from countries with high‐quality competitiveness factors can partially compensate for low‐quality factors in firms' domestic context. We found support for our hypotheses in an unbalanced sample containing 1,340 firms from 32 countries.Managerial SummaryEmploying complex competitive repertoires (i.e., diverse and dynamic arrays of competitive actions), such as price reductions or new product introductions, can help firms outcompete their competition. We argue and empirically show that firms' domestic country context, specifically high‐quality governance, factor and demand conditions, related and supporting industries, and strong context for rivalry drive their ability to implement complex repertoires. Moreover, we find that ownership by foreign investors from favorable country backgrounds can partly compensate for firms' weak conditions at home by serving as enabling bridges. Managers who aim to improve their firms' repertoire complexity but are restricted by their domestic country context may consider attracting foreign investors from countries that have what their countries lack.

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Control of corruption, international investment, and economic growth – Evidence from panel data

Cited by 189 publications

References 42 publications

Does public debt stifle economic growth and increase income inequality in Belt & Road countries? The Role of Corruption

Does public debt stifle economic growth and increase income inequality in Belt & Road countries? The Role of Corruption

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

How the country context shapes firms' competitive repertoire complexity

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