Dodging the grabbing hand: the determinants of unofficial activity in 69 countries

Friedman, Eric; Johnson, Simon; Kaufmann, Daniel; Zoido-Lobatón, Pablo

doi:10.1016/s0047-2727(99)00093-6

Cited by 1,110 publications

(770 citation statements)

References 12 publications

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“…Lambsdorff [75] presents a result showing that corruption lowers productivity. Corruption is also shown to be harmful to the economy through higher inflation [76,77] and a bigger shadow economy [78][79][80].…”

Section: Public Debt Institutions and Economic Growth (This Sectionmentioning

confidence: 99%

Public Debt, Corruption and Sustainable Economic Growth

Kim

2017

Sustainability

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Abstract:There are many studies that look into the relationship between public debt and economic growth. It is hard to find, however, research addressing the role of corruption between these two variables. Noticing this vacancy in current literature, we strive to investigate the effect of corruption on the relationship between public debt and economic growth. For this purpose, the pooled ordinary least squares (OLS), fixed effects models and the dynamic panel generalized method of moments (GMM) models (Arellano-Bond, 1991) are estimated with data of 77 countries from 1990 to 2014. The empirical results show that the interaction term between public debt and corruption is statistically significant. This confirms the hypothesis that the effect of public debt on economic growth is a function of corruption. The sign of the marginal effect is negative in corrupt countries, but public debt enhances economic growth within countries that are not corrupt, i.e., highly transparent.

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Section: Public Debt Institutions and Economic Growth (This Sectionmentioning

confidence: 99%

Public Debt, Corruption and Sustainable Economic Growth

Kim

2017

Sustainability

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“…It appears, in fact, the best policy is to improve citizens' attitude towards the State and its perceived fairness. Johnson et al (1998Johnson et al ( , 1999, Friedman et al (2000), Schneider (2005), Dreher et al (2005), Guha-Khasnobis et al (2006), Dreher and Schneider (2006), Torgler and Schneider (2007), and Bovi and Dell'Anno (2009) find empirical evidence that better institutions are correlated with lower size of the IE. World Bank (1995), Loayza (1996), Galli and Kucera (2003), and Loayza et al (2006) focus their analyses on the impact of regulation on informality.…”

Section: Institutions and The Informal Economymentioning

confidence: 99%

Institutions and human development in the Latin American informal economy

Dell’Anno

2009

Const Polit Econ

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“…As has been discussed in the literature (See Mauro, 1995;Murphy et al, 1993, Friedman et al, 2000Li et al, 2000), corruption is undesirable for countries because it tends to hamper economic growth, increase income inequality, lowers investments, and reduces the level of many other economic drivers of growth (i.e. human capital, urbanization, financial depth, and foreign trade).…”

Section: Introductionmentioning

confidence: 99%