Is corruption an efficient grease?

Pierre-Guillaume Méon and Laurent Weill

No 20/2008, BOFIT Discussion Papers from Bank of Finland Institute for Emerging Economies (BOFIT)

Abstract: This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using three measures of corruption and five measures of other aspects of governance, we observe that corruption is consistently detrimental in countries where institutions are effective, but that it may be positively associated with efficiency in countries where institutions are ineffective. We thus find evidence of the grease the wheels hypothesis.

Keywords: governance; corruption; income; aggregate productivity; efficiency (search for similar items in EconPapers)
JEL-codes: C33 K4 O43 O47 (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (9)

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https://www.econstor.eu/bitstream/10419/212633/1/bofit-dp2008-020.pdf (application/pdf)

Related works:
Journal Article: Is Corruption an Efficient Grease? (2010)
Working Paper: Is corruption an efficient grease? (2010)
Working Paper: Is Corruption an Efficient Grease ? (2008)
Working Paper: Is corruption an efficient grease?
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bofitp:bdp2008_020

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