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Corruption as a response to regulation

Author

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  • Noel D., Johnson
  • William, Ruger
  • Jason, Sorens
  • Steven, Yamarik

Abstract

Previous research has found a negative effect of corruption on growth in the United States. However, some theory suggests corruption might have a positive impact in places with dysfunctional political institutions. This paper investigates whether the corruption-growth link is conditional on the extent of government involvement across U.S. states. Even though no state approaches the level of government intervention found in many developing countries, we still find evidence that corruption’s harmful effects on growth are smaller when regulation is greater.

Suggested Citation

  • Noel D., Johnson & William, Ruger & Jason, Sorens & Steven, Yamarik, 2012. "Corruption as a response to regulation," MPRA Paper 36873, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:36873
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    References listed on IDEAS

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    Cited by:

    1. Petr Wawrosz, 2022. "How Corruption Is and Should Be Investigated by Economic Theory," Economies, MDPI, vol. 10(12), pages 1-23, December.
    2. Mayo, Robert, 2016. "Does Bribery Grease the Wheels of Economic Growth?," MPRA Paper 98433, University Library of Munich, Germany.

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    More about this item

    Keywords

    Corruption; U.S. States; Growth; Regulation;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • H7 - Public Economics - - State and Local Government; Intergovernmental Relations
    • K4 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior

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