Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?

Empirical evidence suggests that governance quality is a key driver of economic growth and that, in turn, higher incomes might have a positive causal effect on the quality of governance. Such complementarity could invite virtuous cycles of development. Using a measure of corruption as our proxy for...

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Main Authors:	Voors, Maarten J., Bulte, Erwin H., Damania, Richard
Format:	Journal Article
Language:	EN
Published:	2012
Subjects:	Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior D720 Bureaucracy Administrative Processes in Public Organizations Corruption D730 Illegal Behavior and the Enforcement of Law K420 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
Online Access:	http://hdl.handle.net/10986/5005

id	okr-10986-5005
recordtype	oai_dc
spelling	okr-10986-50052021-04-23T14:02:20Z Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist? Voors, Maarten J. Bulte, Erwin H. Damania, Richard Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior D720 Bureaucracy Administrative Processes in Public Organizations Corruption D730 Illegal Behavior and the Enforcement of Law K420 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Empirical evidence suggests that governance quality is a key driver of economic growth and that, in turn, higher incomes might have a positive causal effect on the quality of governance. Such complementarity could invite virtuous cycles of development. Using a measure of corruption as our proxy for the quality of governance, and rainfall as an instrument for income, we explore this issue and find evidence to the contrary. For a panel of African countries, positive income shocks on average tend to invite extra corruption. Closer inspection, however, reveals that this result can be attributed to the most corrupt countries. Conversely, countries with a sufficiently low level of corruption can escape the detrimental effect of income booms on corruption and may actually experience a virtuous cycle of development. 2012-03-30T07:30:48Z 2012-03-30T07:30:48Z 2011 Journal Article Journal of African Economies 09638024 http://hdl.handle.net/10986/5005 EN http://creativecommons.org/licenses/by-nc-nd/3.0/igo World Bank Journal Article Africa
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	EN
topic	Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior D720 Bureaucracy Administrative Processes in Public Organizations Corruption D730 Illegal Behavior and the Enforcement of Law K420 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470
spellingShingle	Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior D720 Bureaucracy Administrative Processes in Public Organizations Corruption D730 Illegal Behavior and the Enforcement of Law K420 Formal and Informal Sectors Shadow Economy Institutional Arrangements O170 Institutions and Growth O430 Measurement of Economic Growth Aggregate Productivity Cross-Country Output Convergence O470 Voors, Maarten J. Bulte, Erwin H. Damania, Richard Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
geographic_facet	Africa
relation	http://creativecommons.org/licenses/by-nc-nd/3.0/igo
description	Empirical evidence suggests that governance quality is a key driver of economic growth and that, in turn, higher incomes might have a positive causal effect on the quality of governance. Such complementarity could invite virtuous cycles of development. Using a measure of corruption as our proxy for the quality of governance, and rainfall as an instrument for income, we explore this issue and find evidence to the contrary. For a panel of African countries, positive income shocks on average tend to invite extra corruption. Closer inspection, however, reveals that this result can be attributed to the most corrupt countries. Conversely, countries with a sufficiently low level of corruption can escape the detrimental effect of income booms on corruption and may actually experience a virtuous cycle of development.
format	Journal Article
author	Voors, Maarten J. Bulte, Erwin H. Damania, Richard
author_facet	Voors, Maarten J. Bulte, Erwin H. Damania, Richard
author_sort	Voors, Maarten J.
title	Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
title_short	Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
title_full	Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
title_fullStr	Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
title_full_unstemmed	Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?
title_sort	income shocks and corruption in africa : does a virtuous cycle exist?
publishDate	2012
url	http://hdl.handle.net/10986/5005
_version_	1764393563385233408

Income Shocks and Corruption in Africa : Does a Virtuous Cycle Exist?

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