The Economic Effect of Corruption in Italy: A Regional Panel Analysis

Maurizio Lisciandra () and Emanuele Millemaci

MPRA Paper from University Library of Munich, Germany

Abstract: This paper provides a within-country analysis of the impact of corruption on economic growth using a panel of Italian regions from 1968 to 2011 through a robust measure of corruption. This measure is averaged over 5-year periods to reduce short-run fluctuations and to reduce probable delayed effects, which are typical for latent phenomena such as corruption. The results show a significant negative impact of corruption on long-term growth in all specifications, both on average and for each Italian region. As a consequence, a zero-level of corruption is growth maximizing. This effect is non-linear such that the negative impact of corruption on growth becomes less intense as corruption increases.

Keywords: corruption; economic growth; cross-regional analysis; dynamic panel data (search for similar items in EconPapers)
JEL-codes: D73 K4 O10 R11 (search for similar items in EconPapers)
Date: 2015-02
New Economics Papers: this item is included in nep-gro, nep-law, nep-pol and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:62173

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