http://dx.doi.org/10.1006/jcec.2000.1703">
 

Document Type

Journal Article

Authors

Pak Hung Mo

Department/Unit

Department of Economics

Title

Corruption and economic growth

Language

English

Abstract

This study introduces a new perspective on the role of corruption in economic growth and provides quantitative estimates of the impact of corruption on the growth and importance of the transmission channels. In our ordinary least squares estimations, we find that a 1% increase in the corruption level reduces the growth rate by about 0.72% or, expressed differently, a one-unit increase in the corruption index reduces the growth rate by 0.545 percentage points. The most important channel through which corruption affects economic growth is political instability, which accounts for about 53% of the total effect. We also find that corruption reduces the level of human capital and the share of private investment. J. Comp. Econ., March 2001, 29(1), pp. 66-79. School of Business, Hong Kong Baptist University, Kowloon Tong, Hong Kong. © 2001 Academic Press.

Publication Date

2001

Source Publication Title

Journal of Comparative Economics

Volume

29

Issue

1

Start Page

66

End Page

79

Publisher

Elsevier

ISSN (print)

201475967

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