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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

Description

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]

dc.contributor.authorAkai, Nobuo
dc.contributor.authorHoriuchi, Yusaku
dc.contributor.authorSakata, Masayo
dc.date.accessioned2005-07-21
dc.date.accessioned2006-03-27T02:08:00Z
dc.date.accessioned2011-01-05T08:32:21Z
dc.date.available2006-03-27T02:08:00Z
dc.date.available2011-01-05T08:32:21Z
dc.date.created2005
dc.identifier.urihttp://hdl.handle.net/1885/43028
dc.identifier.urihttp://digitalcollections.anu.edu.au/handle/1885/43028
dc.description.abstractTheoretical 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 previously uninvestigated state-level cross-section data for the United States. Our two-stage least square (2SLS) estimates with a carefully selected set of instruments show that the effect of corruption on economic growth is indeed negative and statistically significant in the middle and long spans but insignificant in the short span.
dc.format.extent361418 bytes
dc.format.extent353 bytes
dc.format.mimetypeapplication/pdf
dc.format.mimetypeapplication/octet-stream
dc.language.isoen_AU
dc.subjectmeasurement
dc.subjectUnited States
dc.subjecteconomic growth
dc.subjectcorruption
dc.titleShort-run and long-run effects of corruption on economic growth: evidence from state-level cross-section data for the United States
dc.typeWorking/Technical Paper
local.description.refereedno
local.identifier.citationyear2005
local.identifier.eprintid3165
local.rights.ispublishedyes
dc.date.issued2005
local.contributor.affiliationANU
local.contributor.affiliationAPSEG
local.citationno.05-5
CollectionsANU Research Publications

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