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Do corruption and peace affect economic growth? Evidences from the cross-country analysis

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  • N. Deyshappriya

Abstract

This paper models the impact of corruption and peace on economic growth during the period of 2008–2012. The study is based on a cross-country analysis which focuses 126 countries. Corruption and peace were represented by Corruption Perception Index and Global Peace Index introduced by Transparency International and Institute for Economics and Peace, respectively. OLS estimates confirmed that corruption negatively affects the per capita economic growth, while peace stimulates the economic growth of the tested countries. These results are consistent with the previous studies, and the results also suggest that labour and financial crisis reduce the per capita economic growth though foreign direct investment boosts the economic growth. The current study recommends securing the good governance which reduces the level of corruption along with peaceful environment in order to ensure the steady economic growth. Copyright Institute for Social and Economic Change 2015

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  • N. Deyshappriya, 2015. "Do corruption and peace affect economic growth? Evidences from the cross-country analysis," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 17(2), pages 135-147, October.
    • Handle: RePEc:spr:jsecdv:v:17:y:2015:i:2:p:135-147
    DOI: 10.1007/s40847-015-0016-1
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    2. Yilmaz Bayar & Marius Dan Gavriletea, 2018. "Peace, terrorism and economic growth in Middle East and North African countries," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(5), pages 2373-2392, September.
    3. Veronika Linhartová & Martina Halásková, 2022. "Determinants of corruption: a panel data analysis of Visegrad countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 51-79, March.

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