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Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam

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  • Jie Bai
  • Seema Jayachandran

Abstract

Government corruption is more prevalent in poor countries than in rich countries. This paper uses cross-industry heterogeneity in growth rates within Vietnam to test empirically whether growth leads to lower corruption. The analysis uses survey data collected from over 13,000 Vietnamese firms between 2006 and 2010 and an instrumental variables strategy based on industry growth in other provinces. [BREAD Working paper no. 399].

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  • Jie Bai & Seema Jayachandran, 2013. "Does Economic Growth Reduce Corruption? Theory and Evidence from Vietnam," Working Papers id:5507, eSocialSciences.
    • Handle: RePEc:ess:wpaper:id:5507
    Note: Institutional Papers
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    More about this item

    Keywords

    corruption; bribery; economic growth; bureaucratic competition; government; vietnam; bribe extraction;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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