Corruption as a response to regulation

Noel Johnson (), Ruger William, Sorens Jason and Steven Yamarik ()

MPRA Paper from University Library of Munich, Germany

Abstract: Previous research has found a negative effect of corruption on growth in the United States. However, some theory suggests corruption might have a positive impact in places with dysfunctional political institutions. This paper investigates whether the corruption-growth link is conditional on the extent of government involvement across U.S. states. Even though no state approaches the level of government intervention found in many developing countries, we still find evidence that corruption’s harmful effects on growth are smaller when regulation is greater.

Keywords: Corruption; U.S. States; Growth; Regulation (search for similar items in EconPapers)
JEL-codes: D7 H7 K4 O1 (search for similar items in EconPapers)
Date: 2012-02
New Economics Papers: this item is included in nep-pol and nep-reg
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:36873

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