Corruption, Growth, and Income Distribution: Are there Regional Differences?

Abstract

Corruption, Degenerative corruption, Growth, Income inequality, Regional differences, Panel data, Africa, Asia, Latin America, Oecd, O1, O55, C33,

Have economic growth and institutional quality contributed to poverty and inequality reduction in Asia?

“…Gyimah-Brempong [43] examined the effect of corruption on income inequality in selected African countries, and reported that higher corruption had an adverse effect on the income distribution. Further, Gyimah-Brempong and de Camacho [44] pointed out that the 'degenerative' nature of corruption practiced typically in African and Latin American countries has a much more deleterious effect on the income distribution, compared to the 'developmental' corruption found in Asia.…”

“…Gyimah-Brempong and de Camacho [44] concluded that improvements in institutional quality were associated with falling income inequality. However, Andres and Ramlogan-Dobson [21], Chong and Caldéron [14], and Li et al [45] claimed that there could be a trade-off between such improvements and income inequality in developing countries.…”

“…For instance, while several Asian countries such as China and Thailand have high corruption levels, they have experienced outstanding growth rates. Gyimah-Brempong and de Camacho [44] concluded that the effect of corruption on growth and the income distribution may be different according to the region examined. In fact, Wederman [61] argued that the 'developmental' type of corruption found typically in East Asia is less detrimental to growth and poverty, compared to the 'degenerative' type witnessed in Africa, Latin America, and the Caribbean.…”

A Good Turn Deserves Another: Political Stability, Corruption and Corruption-Control

“…2 Marginal positive impacts are characteristics of countries with substantial institutional deficiency (Méon & Weill, 2010;Aidt, 2009;Aidt et al, 2008;Houston, 2007). 3 See, amongst others: Li et al (2000), Gymiah-Brempong (2002), Gupta et al (2002), You and Khagram (2005), Gyimah-Brempong et al (2006) and Dincer and Gunalp (2008).…”

A Matter of Experience and Perception: Examining Corruption in Latin America

“…The ramifications can be comprehensive and handicap progress, affecting economic development, political efficacy, and social stability. Several scholars highlight corruption as a primary cause for underdevelopment (Alam, 1989;Macrae, 1982;O'Higgins, 2006;Theobald, 1999) while others point to corruption as the leading reason for stagnant economies (GyimahBrempong & Munoz de Gyimah-Brempong, 2006;Sandbrook, 1986;Warren, 2004). I argue that corruption, whether experienced or perceived, impacts the population's satisfaction with democracy and its values, eroding trust in government and formal political structures.…”