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Corrupt clubs and the convergence hypothesis

Naved Ahmad ()

Journal of Economic Policy Reform, 2008, vol. 11, issue 1, 21-28

Abstract: Empirical work in a cross-section framework demonstrates little or no support for absolute convergence in per capita GDP. I argue in this paper that “divergence in corruption”, defined as the tendency of corrupt countries to become more corrupt faster than less corrupt nations, is a neglected factor that also determines the speed of convergence. Using Transparency International (TI) corruption perceptions index, I estimate C-σ and C-γ coefficients for corrupt and less corrupt economies to explore the C-divergence in corruption rankings. The study concludes that corrupt countries are C-converging, forming a “corrupt club”.

Keywords: corruption indices; corrupt club; C-convergence; convergence; backwardness (search for similar items in EconPapers)
Date: 2008
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