Corruption, Productivity and Transition

Geoffrey Wyatt

No 205, CERT Discussion Papers from Centre for Economic Reform and Transformation, Heriot Watt University

Abstract: The level of productivity is correlated across countries with measures of (lack of) corruption, but this appears to be due to a common association of these variables with measures of social infrastructure, here measured by a combination of governance indexes labelled "rule of law" and "government effectiveness". Econometric use of instruments establishes that causation runs from social infrastructure to productivity. Socialism has had a positive direct effect on productivity but one that is dominated by a negative indirect effect via social infrastructure.

Keywords: corruption; governance; productivity; social infrastructure; transition (search for similar items in EconPapers)
JEL-codes: H10 O11 P20 (search for similar items in EconPapers)
Date: 2002
New Economics Papers: this item is included in nep-cdm, nep-dev, nep-pbe and nep-tra
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hwe:certdp:0205

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