Corruption's effect on BRICS countries' economic growth: a panel data analysis

Abstract

PurposeThe theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS countries' economic growth.Design/methodology/approachA panel dataset on BRICS countries spanning 1996 to 2020 was used. Bias-corrected estimators in small dynamic panels were employed to estimate a growth model as a linear-quadratic function of corruption that accounts for cross-sectional dependence, endogeneity and unobserved heterogeneity due to country and time-specific characteristics.FindingsThe results indicate that corruption is detrimental to economic growth in BRICS countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance.Originality/valueAn important limitation of corruption studies is the difficulty in measuring real corruption experiences due to the secretive nature of corruption and the fact that corruption is known not to leave a paper trail. For the uncertainty of the index estimates, the analysis used a continuous corruption composite score measuring the standard deviation of the extent to which public power is exercised for public gain. Furthermore, estimation and inference are robust to small dynamic panels with a general form of cross-sectional dependence.

The Impact of Crime against a Person on Domestic Investment in Dubai

“…These values indicate an inverse proximity effect regarding the impact on domestic investment. The results are consistent with many recent studies concerning the relationship between crime and economic variables (Garriga and Phillips 2022;Sugiharti et al 2022;Simo-Kengne and Bitterhout 2023;Raj and Kalluru 2023;Boamah et al 2023;Yu et al 2023;Magableh et al 2023;Forgione and Migliardo 2023), suggesting that the Dubai Police needs to continue conducing activities in order to minimize the impact of crime against a person on domestic investment and economic activity. This management involves the utilization of advanced technology and artificial intelligence.…”

Editorial: ESAN's 60th anniversary, second special section on business economics in Ibero-America and editorial transition

“…For their part, Simo-Kengne and Bitterhout (2023) also refer to the BRICS countries and can determine that corruption is detrimental to economic growth in these countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance.…”