Corruption, governance, investment and growth in emerging markets
Everhart, Stephen S.
McNab, Robert M.
MetadataShow full item record
The article investigates the potential impact of corruption on economic growth by examining the effect that corruption may have on several significant determinants of economic growth, namely, investment in human, private and public capital, and on governance. Our theoretical approach allows for corruption to influence economic growth directly and indirectly through different investment and governance channels. All previous empirical work on this issue has been based on national income and product accounts (NIPA) data, which do not normally break down gross domestic investment into its private and public sector, and if they do, they misclassify investment by public enterprises as private investment, potentially biasing empirical findings. In this article we use a data set from the International Finance Corporation that bypasses these problems. We find that the impact of corruption on the level of public investment appears to be more ambiguous than it has been found in the previous literature. We, however, find that the impact of corruption on the accumulation of private capital is significantly more damaging than what has been pre- viously found. We also find that the impact of corruption on governance is unambiguously negative, which further deters economic growth.
The article of record as published may be found at https://doi.org/10.1080/00036840701439363
RightsThis publication is a work of the U.S. Government as defined in Title 17, United States Code, Section 101. Copyright protection is not available for this work in the United States.
Showing items related by title, author, creator and subject.
Failed Economic Take-Offs and Terrorism Conceptualizing a Proper Role for U.S. Assistance to Pakistan; Strategic Insights: v.2, issue 2 (February 2003) Looney, Robert (Monterey, California. Naval Postgraduate School, 2003-02);During the 1990s Pakistan's economy suffered on two accounts. One, lack of vision by the civilian ruling elites to make efficient use of public financial resources to boost economic growth, contain poverty, and develop ...
New Economic Model for Iraq Future Vision and Market-Oriented State Corporations Foster Liberalization of Oil-Rentier Economies Al-Saadi, Sabri Zire (Naval Postgraduate School (U.S.)Program for Culture and Conflict Studies, 2012-06-01);"Iraq's loaded experience is a thought-provoking case for better understanding of the potentialities of the oil-rentier developing countries. Over the last six decades, Iraq underwent radical economic and violent political ...
Ear, Sophal (Routledge, 2007-04);The impact of massive aid on development and governance has been studied for a decade with mixed results. Using the results of an elite survey on aid and quality of governance based on Kaufmann et al.’s six dimensions ...