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...

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Main Authors: Rahman, Aminur, Kisunko, Gregory, Kapoor, Kapil
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
id okr-10986-19765
recordtype oai_dc
spelling okr-10986-197652021-04-23T14:03:44Z Estimating the Effects of Corruption : Implications for Bangladesh Rahman, Aminur Kisunko, Gregory Kapoor, Kapil ACCOUNTABILITY ADVERSE EFFECTS ALLOCATION OF RESOURCES ALLOCATIVE EFFICIENCY AUTHORITY BRIBERY BUREAUCRACY BUREAUCRAT CIVIL SOCIETY COMPETITIVE BIDDING COMPETITIVE BIDDING PROCESS CORRUPT COUNTRIES CORRUPT OFFICIALS CORRUPT PRACTICES CORRUPTION CORRUPTION INDICATOR CORRUPTION LEVELS CORRUPTION VARIABLE COUNTRY COVERAGE DEMOCRACY DIRECT INVESTMENT DISCRETIONARY POWERS ECONOMETRIC ANALYSIS ECONOMIC ANALYSIS ECONOMIC DEVELOPMENT ECONOMIC GROWTH ECONOMIC PERFORMANCE ECONOMIC RISKS EMPIRICAL ANALYSIS EMPIRICAL EVIDENCE EXTREME POVERTY FOREIGN DIRECT INVESTMENT FOREIGN INVESTMENT FOREIGN INVESTORS FREE PRESS GCR GDP GDP PER CAPITA GNP GNP PER CAPITA GOVERNANCE PROBLEM GOVERNMENT CONSUMPTION GROWTH MODELS GROWTH RATE GROWTH RATES GROWTH REGRESSION GROWTH THEORIES HUMAN CAPITAL IMPORTS IMPROVING GOVERNANCE INCOME INEFFICIENCY INEQUALITY INSTITUTIONAL ENVIRONMENT INSTITUTIONAL STRUCTURE INVESTMENT RATES LACK OF ACCOUNTABILITY LDCS LOBBYING MILITARY REGIME NASH EQUILIBRIUM NATIONS POLICY MAKERS POLITICAL RISK POPULATION GROWTH PRODUCTIVITY PUBLIC ADMINISTRATION PUBLIC EXPENDITURE PUBLIC EXPENDITURES PUBLIC FINANCES PUBLIC INVESTMENT PUBLIC POLICY PUBLIC SECTOR REAL GDP SECONDARY SCHOOLS SMUGGLING SOCIAL PROGRAMS STATE REVENUE TACIT COLLUSION TAX RATE TAX REVENUE TAX SYSTEMS TIME SERIES TRANSACTION COSTS TRANSITION ECONOMIES TRANSPARENCY UNEQUAL ACCESS 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. 2014-08-27T18:19:16Z 2014-08-27T18:19:16Z 2000-11 http://documents.worldbank.org/curated/en/2000/11/717506/estimating-effects-corruption-implications-bangladesh http://hdl.handle.net/10986/19765 English en_US Policy Research Working Paper;No. 2479 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research South Asia Bangladesh
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic ACCOUNTABILITY
ADVERSE EFFECTS
ALLOCATION OF RESOURCES
ALLOCATIVE EFFICIENCY
AUTHORITY
BRIBERY
BUREAUCRACY
BUREAUCRAT
CIVIL SOCIETY
COMPETITIVE BIDDING
COMPETITIVE BIDDING PROCESS
CORRUPT COUNTRIES
CORRUPT OFFICIALS
CORRUPT PRACTICES
CORRUPTION
CORRUPTION INDICATOR
CORRUPTION LEVELS
CORRUPTION VARIABLE
COUNTRY COVERAGE
DEMOCRACY
DIRECT INVESTMENT
DISCRETIONARY POWERS
ECONOMETRIC ANALYSIS
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC RISKS
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EXTREME POVERTY
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTORS
FREE PRESS
GCR
GDP
GDP PER CAPITA
GNP
GNP PER CAPITA
GOVERNANCE PROBLEM
GOVERNMENT CONSUMPTION
GROWTH MODELS
GROWTH RATE
GROWTH RATES
GROWTH REGRESSION
GROWTH THEORIES
HUMAN CAPITAL
IMPORTS
IMPROVING GOVERNANCE
INCOME
INEFFICIENCY
INEQUALITY
INSTITUTIONAL ENVIRONMENT
INSTITUTIONAL STRUCTURE
INVESTMENT RATES
LACK OF ACCOUNTABILITY
LDCS
LOBBYING
MILITARY REGIME
NASH EQUILIBRIUM
NATIONS
POLICY MAKERS
POLITICAL RISK
POPULATION GROWTH
PRODUCTIVITY
PUBLIC ADMINISTRATION
PUBLIC EXPENDITURE
PUBLIC EXPENDITURES
PUBLIC FINANCES
PUBLIC INVESTMENT
PUBLIC POLICY
PUBLIC SECTOR
REAL GDP
SECONDARY SCHOOLS
SMUGGLING
SOCIAL PROGRAMS
STATE REVENUE
TACIT COLLUSION
TAX RATE
TAX REVENUE
TAX SYSTEMS
TIME SERIES
TRANSACTION COSTS
TRANSITION ECONOMIES
TRANSPARENCY
UNEQUAL ACCESS
spellingShingle ACCOUNTABILITY
ADVERSE EFFECTS
ALLOCATION OF RESOURCES
ALLOCATIVE EFFICIENCY
AUTHORITY
BRIBERY
BUREAUCRACY
BUREAUCRAT
CIVIL SOCIETY
COMPETITIVE BIDDING
COMPETITIVE BIDDING PROCESS
CORRUPT COUNTRIES
CORRUPT OFFICIALS
CORRUPT PRACTICES
CORRUPTION
CORRUPTION INDICATOR
CORRUPTION LEVELS
CORRUPTION VARIABLE
COUNTRY COVERAGE
DEMOCRACY
DIRECT INVESTMENT
DISCRETIONARY POWERS
ECONOMETRIC ANALYSIS
ECONOMIC ANALYSIS
ECONOMIC DEVELOPMENT
ECONOMIC GROWTH
ECONOMIC PERFORMANCE
ECONOMIC RISKS
EMPIRICAL ANALYSIS
EMPIRICAL EVIDENCE
EXTREME POVERTY
FOREIGN DIRECT INVESTMENT
FOREIGN INVESTMENT
FOREIGN INVESTORS
FREE PRESS
GCR
GDP
GDP PER CAPITA
GNP
GNP PER CAPITA
GOVERNANCE PROBLEM
GOVERNMENT CONSUMPTION
GROWTH MODELS
GROWTH RATE
GROWTH RATES
GROWTH REGRESSION
GROWTH THEORIES
HUMAN CAPITAL
IMPORTS
IMPROVING GOVERNANCE
INCOME
INEFFICIENCY
INEQUALITY
INSTITUTIONAL ENVIRONMENT
INSTITUTIONAL STRUCTURE
INVESTMENT RATES
LACK OF ACCOUNTABILITY
LDCS
LOBBYING
MILITARY REGIME
NASH EQUILIBRIUM
NATIONS
POLICY MAKERS
POLITICAL RISK
POPULATION GROWTH
PRODUCTIVITY
PUBLIC ADMINISTRATION
PUBLIC EXPENDITURE
PUBLIC EXPENDITURES
PUBLIC FINANCES
PUBLIC INVESTMENT
PUBLIC POLICY
PUBLIC SECTOR
REAL GDP
SECONDARY SCHOOLS
SMUGGLING
SOCIAL PROGRAMS
STATE REVENUE
TACIT COLLUSION
TAX RATE
TAX REVENUE
TAX SYSTEMS
TIME SERIES
TRANSACTION COSTS
TRANSITION ECONOMIES
TRANSPARENCY
UNEQUAL ACCESS
Rahman, Aminur
Kisunko, Gregory
Kapoor, Kapil
Estimating the Effects of Corruption : Implications for Bangladesh
geographic_facet South Asia
Bangladesh
relation Policy Research Working Paper;No. 2479
description 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.
format Publications & Research :: Policy Research Working Paper
author Rahman, Aminur
Kisunko, Gregory
Kapoor, Kapil
author_facet Rahman, Aminur
Kisunko, Gregory
Kapoor, Kapil
author_sort Rahman, Aminur
title Estimating the Effects of Corruption : Implications for Bangladesh
title_short Estimating the Effects of Corruption : Implications for Bangladesh
title_full Estimating the Effects of Corruption : Implications for Bangladesh
title_fullStr Estimating the Effects of Corruption : Implications for Bangladesh
title_full_unstemmed Estimating the Effects of Corruption : Implications for Bangladesh
title_sort estimating the effects of corruption : implications for bangladesh
publisher World Bank, Washington, DC
publishDate 2014
url http://documents.worldbank.org/curated/en/2000/11/717506/estimating-effects-corruption-implications-bangladesh
http://hdl.handle.net/10986/19765
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