 The interaction between corruption, bank cost efficiency and economic development in ItalyCristian Barra, Anna Papaccio and Nazzareno Ruggiero Economic Systems, 2024, vol. 48, issue 3 Abstract: In this paper, we assess the interaction between corruption, bank cost efficiency, and economic development. Existing literature on the subject normally focuses separately on the link between corruption, financial development, and growth, and finds ambiguous results, not distinguishing between different types of credit institutions. We use Italian disaggregated data from 2004 to 2012, considering cooperative and non-cooperative banks, to determine whether controlling corruption affects banks’ cost efficiency in Italian provinces and promotes economic development. Utilizing a panel autoregressive model, we find that controlling corruption magnifies the positive impact of banks’ cost efficiency on economic development. Evidence of a positive effect of the interaction is observed, particularly in the case of non-cooperative banks and for higher values of the Control of Corruption Index. Keywords: bank cost efficiency; economic development; controlling corruption; Italian provinces (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:ecosys:v:48:y:2024:i:3:s0939362524000499 DOI: 10.1016/j.ecosys.2024.101227 Access Statistics for this article Economic Systems is currently edited by R. Frensch More articles in Economic Systems from Elsevier Contact information at EDIRC. |
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