Corruption and Economic Development in Energy-rich Economies

Yelena Kalyuzhnova (), Ali Kutan and Taner Yigit
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Yelena Kalyuzhnova: The Centre for Euro-Asian Studies, The University of Reading, Whiteknights, PO Box 218, Reading RG6 6AA, UK.

Comparative Economic Studies, 2009, vol. 51, issue 2, 165-180

Abstract: We empirically model the causes of corruption and test the economic development–corruption link in energy-rich economies, using data from 48 countries with energy resources. The results indicate that energy abundance may not necessarily hurt economic development in energy-rich countries, allowing enterprises to conduct business more effectively to reduce corruption, establishing a better political (democratic) regime improves corruption rankings, and finally while corruption reduces both the level of GDP per capita and its growth rate, economic development decreases corruption. Comparative Economic Studies (2009) 51, 165–180. doi:10.1057/ces.2008.46

Date: 2009
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