Corruption and Infrastructure at the Country and Regional Level

Robert Gillanders

MPRA Paper from University Library of Munich, Germany

Abstract: This paper examines the relationship between corruption and infrastructure at both the country and regional level using the World Bank’s Enterprise Surveys data. A statistically significant and considerable relationship is established between the measure of corruption in the macro data and the measures of transportation and electricity infrastructure. Countries with more corruption tend to have worse infrastructure in the eyes of their firms. This link is shown to remain when one uses other measures of corruption and after controlling for GDP per capita, institutional quality and land area. At the regional level, the key result is unchanged. The magnitude and significance of this result is shown to vary by global region. Two stage least squares results, using distance from the equator as an instrument at the macro level support the simple OLS results and allow us to have some confidence that the causality runs from corruption to infrastructure. Finally, it is shown that within country variation in corruption has a significant effect on regional infrastructure.

Keywords: Corruption; infrastructure; cross country; regional variation (search for similar items in EconPapers)
JEL-codes: D73 H54 O18 (search for similar items in EconPapers)
Date: 2013-04-12
New Economics Papers: this item is included in nep-geo, nep-pbe, nep-tre and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Corruption and Infrastructure at the Country and Regional Level (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:46679

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