Corruption, Structural Reforms, and Economic Performance in the Transition Economies

Macroeconomic Challenges of Scaling Up Aid to Africa: A Checklist for Practitioners

“…27 Corruption is shown to lower growth by reducing private investment, attracting talented individuals into unproductive activities, and encouraging poor management of natural resources. Experience in the former Soviet Union and Eastern Europe suggests that structural reforms designed to rationalize the role of the state, increase reliance on market-based pricing, and create a sound regulatory environment contribute to growth directly and indirectly by lowering the incidence of corruption (Abed and Davoodi, 2002).…”

Corruption causes inequality, or is it the other way around? An empirical investigation for a panel of countries

“…Despite arguments in favour of corruption exist, in particular with regard to the ability of corruption to help overcome bureaucratic rigidities and maintain allocation efficiency when there is competition between bribers ( Bardhan, 1997), the misuse of public office for private gain in a manner that contravenes the rules of the game (so it is defined corruption) has been found responsible for losses in GDP growth (Mauro 1996; Leite and Weideman 1999; Tanzi and Davoodi 2000, Abed and Davoodi 2000), in the ratio of investments to GDP (Mauro 1996; Ades and Di Tella 1997; Tanzi and Davoodi 1997), in the ratio of public education and public health spending to GDP (Mauro 1998), in the ratio of tax revenues to GDP (Ghura 1998), in some measures of government revenues to GDP ratio (Tanzi and Davoodi 2000), in the level of inflation (Al-Marhubi, 2000) and finally in the amount of foreign direct investment (Habib andZurawicki 2001, Dutta et al 2017) 1 .…”

“…However, the debate on how corruption affects inequality comes often to very different conclusions and it is therefore inconclusive: Gupta et al (2002), for example, show that high and rising corruption increases income inequality and poverty. They conclude that policies that reduce corruption will most likely reduce income inequality and poverty as well, while Andres and Ramlogan-Dobson (2011) show that lower corruption is associated with higher inequality in Latin America countries, 1 For a systematic review of the argument, see Akçay (2006).…”

A Sensitivity Analysis Regarding the Impacts of Trade Openness and Globalization Growth: Empirical Evidence from Korea

“…For example, Abed and Davoodi (2000), based on single cross-sectional data for 25 countries from the 1999 International Monetary Fund staff and World Development Indicators (World Bank), present the results of OLS regressions in which the anti-corruption index which has a scale from 0 to 10 (highly corrupt=0; highly clean=10) is regressed for the per capita real growth rate. They find that lower corruption is significantly associated with higher growth; a one unit increase on the corruption index increases the growth rate by 2.64% at the 0.01 level of significance.…”