EconPapers    
Economics at your fingertips  
 

Corruption and the Institutional Environment for Growth

Jac Heckelman () and Benjamin Powell ()
Additional contact information
Benjamin Powell: Department of Economics, Suffolk University, 8 Ashburton PL, Boston, MA 02108, USA.

Comparative Economic Studies, 2010, vol. 52, issue 3, 378 pages

Abstract: Several cross-country studies have found that corruption is detrimental to economic growth, but the findings are not universally robust. We utilize the economic freedom index to examine if corruption can facilitate growth by allowing entrepreneurs to avoid inefficient policies and regulations when economic freedom is limited. Using regression analysis, we find that corruption is growth enhancing when economic freedom is most limited but the beneficial impact of corruption decreases as economic freedom increases. Not all areas of economic freedom affect the corruption–growth relationship equally. In particular, we find the beneficial effect of corruption disappears most quickly when the size of government and the extent of regulation decrease.

Date: 2010
References: Add references at CitEc
Citations: View citations in EconPapers (18) Track citations by RSS feed

Downloads: (external link)
http://www.palgrave-journals.com/ces/journal/v52/n3/pdf/ces201014a.pdf Link to full text PDF (application/pdf)
http://www.palgrave-journals.com/ces/journal/v52/n3/full/ces201014a.html Link to full text HTML (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Corruption and the Institutional Environment for Growth (2008) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:compes:v:52:y:2010:i:3:p:351-378

Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/41294/PS2

Access Statistics for this article

Comparative Economic Studies is currently edited by Nauro Campos

More articles in Comparative Economic Studies from Palgrave Macmillan, Association for Comparative Economic Studies Contact information at EDIRC.
Bibliographic data for series maintained by Sonal Shukla ().

 
Page updated 2020-06-25
Handle: RePEc:pal:compes:v:52:y:2010:i:3:p:351-378