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Short-run and long-run effects of corruption on economic growth: evidence from state-level cross-section data for the United States

Akai, Nobuo; Horiuchi, Yusaku; Sakata, Masayo


Theoretical studies suggest that corruption may counteract government failure and promote economic growth in the short run, given exogenously determined sub optimal bureaucratic rules and regulations. As the government failure is itself a function of corruption, however, corruption should have detrimental effects on economic growth in the long run. In this paper, we measure the rate of economic growth for various time spans—short (1998–2000), middle (1995–2000) and long (1991–2000)—using...[Show more]

CollectionsANU Research Publications
Date published: 2005
Type: Working/Technical Paper


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