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Corruption, production structure and economic development in developing countries

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  • Fraga, Gilberto Joaquim
  • Santos, Helis Cristina Zanuto Andrade

Abstract

Corruption has reached alarming levels in recent years and now costs the equivalent of about 5% of global output annually. Given this backdrop, this study sets out to investigate how corruption and the production structure affects the socioeconomic development of developing countries, applying a dynamic panel data procedure to the period 2002-2014. The main findings include the fact that the relation between corruption and development is non-linear. The study of the different dimensions of development also needs to encompass both economic and social perspectives. In general, there are signs that a more sophisticated production structure distorts the effects of corruption control by strengthening the influence of corruption itself on socioeconomic development.

Suggested Citation

  • Fraga, Gilberto Joaquim & Santos, Helis Cristina Zanuto Andrade, 2020. "Corruption, production structure and economic development in developing countries," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), April.
  • Handle: RePEc:ecr:col070:45976
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