Estimating the Effects of Corruption : Implications for Bangladesh
Building on the pioneering work of Barro (1991) and Mauro (1995) to include the most recent years for which data are available (for Bangladesh in the 1990s), the authors investigate the relationships between corruption, and growth, and, between cor...
| Main Authors: | , , |
|---|---|
| Format: | Policy Research Working Paper |
| Language: | English en_US |
| Published: |
World Bank, Washington, DC
2014
|
| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/2000/11/717506/estimating-effects-corruption-implications-bangladesh http://hdl.handle.net/10986/19765 |
| Summary: | Building on the pioneering work of Barro
(1991) and Mauro (1995) to include the most recent years for
which data are available (for Bangladesh in the 1990s), the
authors investigate the relationships between corruption,
and growth, and, between corruption and investment, both
domestic and foreign, to see whether they have changed from
earlier decades. Then they move away from Mauro's
implicit assumption that the corruption index value for a
relatively short period of time, can be used as a proxy for
the long run, and further augment Mauro's model by
including significant regional dummy variables, in an
attempt to take account of various region-specific effects.
The authors also analyze the sensitivity of corruption in
the presence, and absence of various policy, geographic, and
demographic variables that are widely used in empirical
growth, and investment literature. The findings suggest that
countries serious about improving governance, and reducing
corruption, should redefine the role of government, overhaul
the system of incentives, and strengthen domestic
institutions, to make sure the necessary checks, and
balances are in place. Such an approach to reform would help
attract more investment - both domestic and foreign - and
would accelerate economic growth, and poverty reduction. |
|---|