Corruption, growth and political regimes: Cross country evidence

Mendez, Fabio; Sepúlveda, Facundo

doi:10.1016/j.ejpoleco.2005.04.005

Cited by 344 publications

(213 citation statements)

References 23 publications

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“…16 The exceptions are papers on investment flows to the sector, typically flows of foreign direct investment (FDI). For a recent paper that includes all relevant references on corruption and FDI, see Ghosh Banerjee and others (2006) 17 See for example Rock and Bonnett (2004), Pellegrini and Gerlagh (2004), and Méndez and Sepúlveda (2006). 18 Examples are Xu (2002) andLaffont andN'Guessan (1999). infrastructure outputs.…”

Section: Methodsmentioning

confidence: 99%

Utilities Reforms And Corruption In Developing Countries

Estache¹,

Goicoechea²,

Trujillo³

2006

Policy Research Working Papers

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This paper shows empirically that "privatization" in the energy, telecommunications, and water sectors, and the introduction of independent regulators in those sectors, have not always had the expected effects on access, affordability, or quality of services. It also shows that corruption leads to adjustments in the quantity, quality, and price of services consistent with the profit-maximizing behavior that one would expect from monopolies in the sector. Finally, our results suggest that privatization and the introduction of independent regulators have, at best, only partial effects on the consequences of corruption for access, affordability, and quality of utilities services.

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Section: Methodsmentioning

confidence: 99%

Utilities Reforms And Corruption In Developing Countries

Estache¹,

Goicoechea²,

Trujillo³

2006

Policy Research Working Papers

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“…However, the corruption appears to have no impact on growth in low quality political regimes. The strong point of this study is that, instead of splitting the sample of countries according to some predetermined rule like Méndez and Sepúlveda (2006) [26] did, the data is allowed to determine to which of two potential growth regimes a country belongs. More recent studies also support this result.…”

Section: Review Of Empirical Studiesmentioning

confidence: 99%

Corruption and economic growth, with a focus on Vietnam

Anh¹,

Minh²,

Tran‐Nam

2016

Crime Law Soc Change

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Despite the Government's recognition of the serious threat of uncontrolled corruption to the legitimacy and long-term survival of the current political system, Vietnam is still struggling to translate its policies and comparatively strong legislative framework into practice. There exists little reliable, quantitative evidence of the harmful impact of corruption on economic growth in Vietnam. Using the most updated and available data and a model incorporating transmission channels, this article attempts to estimate the direct and indirect effects of corruption on GDP growth rate. In general, the findings confirm the negative association between corruption and economic growth. Investment appears to be the most important transmission channel and the effect of corruption on investment is non-linear so that indirect effects of corruption on growth (via investments) depends on the value of each country's corruption level. In case of Vietnam, a one unit increase in the corruption perception index (CPI) 1 leads to a 2.15% increase in the proportion of gross domestic investment over GDP, which in turns increases growth rate by 0.372%. Counting both direct and indirect effects, a one-unit increase in the corruption perception index (CPI) will increase the growth rate by 0.509%, indicating that the investment channel accounts for 62.92% of total effects.

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“…Saha and Ben-Ali (2017) elaborate that corruption may have a positive impact by "greasing the wheels of economy" as it may help in minimizing costs caused by redundant bureacratic activities. It is argued that corruption is beneficial for economic growth by avoiding bureaucratic regulations that may be "cumbersome" (Mendez & Sepulveda, 2006). Furthermore, several economists believe that corruption enhances economic growth in certain cases; some found that in order to maximize economic output there should exist an optimum level of corruption and others found that while corruption may have a negative effect on growth, this effect has a diminishing impact and becomes insignificant (Huang, 2016).…”

Section: Background Of the Studymentioning

confidence: 99%

The Impact of Environmental Regulations, Corruption and Economic Freedom on Economic Growth: Empirical Evidence from China

Baiti

Naghavi

Yin-Fah

2017

IJEF

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The purpose of this study is to investigate the impact of environmental regulations, corruption and economic freedom on economic growth in China. Different indices were used as measurements of the variables; Environmental Policy Stringency Index, Control of Corruption Index and Economic Freedom of the World Index. The study uses quantitative methods to empirically determine which factors play a role in China's progressive economic growth rates. Unit root test, Johansen cointegration and the Autoregressive Distributed Lag (ARDL) modelling were applied to examine the short and long run correlations. Results indicated that there is in fact a correlation between environmental regulations, corruption, economic freedom and economic growth. Long run coefficients demonstrated that environmental regulations had a negative impact on economic growth, while corruption and economic freedom displayed positive results. However, short run coefficients showed that environmental regulation is insignificant in the short run, corruption maintains a positive impact and economic freedom negatively effects economic growth in the short run.

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Corruption, growth and political regimes: Cross country evidence

Cited by 344 publications

References 23 publications

Utilities Reforms And Corruption In Developing Countries

Utilities Reforms And Corruption In Developing Countries

Corruption and economic growth, with a focus on Vietnam

The Impact of Environmental Regulations, Corruption and Economic Freedom on Economic Growth: Empirical Evidence from China

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