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Corruption Centralization, Investments, and Growth: Analysis of 62 countries for 1995-2007

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  • Guych NURYYEV
  • Charles HICKSON

Abstract

The main topic of this study is the centralization of corrupt activities among public officials. The authors develop a measure of corruption centralization, categorize countries with relatively high corruption into three groups based on this measure, and discuss its effect on investments and growth. The analysis suggests that decentralized corruption has an especially destructive effect on investments. The paper also revisits the relationship between corruption and economic growth. The results of this reconsideration confirm the negative effect of corruption on development and demonstrate endogeneity between corruption and growth. The panel data used in the analysis include approximately five dozen countries studied over a period of more than a decade.

Suggested Citation

  • Guych NURYYEV & Charles HICKSON, 2015. "Corruption Centralization, Investments, and Growth: Analysis of 62 countries for 1995-2007," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 15(1), pages 17-30.
    • Handle: RePEc:eaa:aeinde:v:15:y:2015:i:1_2
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    References listed on IDEAS

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    Cited by:

    1. Bakri Abdul Karim & Zulkefly Abdul Karim & Mohamad Naufal Nasharuddin, 2018. "Corruption and Foreign Direct Investment (FDI) in ASEAN-5: A Panel Evidence," Economics and Finance in Indonesia, Faculty of Economics and Business, University of Indonesia, vol. 64, pages 145-156, Desember.

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    More about this item

    Keywords

    corruption; corruption centralization; investments; economic development.;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements

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