Economic growth with endogenous corruption: an empirical study

In Very Corrupt Countries, Corrupt Practices Boost Growth (Harvard Business Review, May 11, 2011)

In deeply corrupt countries such as Congo, incidences of corrupt practices actually enhance economic growth, perhaps by helping companies sidestep onerous rules, says Mushfiq Swaleheen of Florida Gulf Coast University. But that's only at the extreme; for a country with average endemic corruption, a one-standard-deviation increase in corrupt incidences depresses per-capita GDP growth by 0.12 percentage points, he has found. (see source below)

Author: Swaleheen, Mushfiq
Primary Title: Economic growth with endogenous corruption: an empirical study
Journal Name: Public Choice
Cover Date: 2011-01-01
Publisher: Springer Netherlands
Issn: 0048-5829
Subject: Business and Economics
Start Page: 23
End Page: 41
Volume: 146
Issue: 1
Doi: 10.1007/s11127-009-9581-1
Abstract: The effect of corruption on the rate of economic growth for a panel of countries during 1984–2007 is investigated using recent improvements in dynamic panel data techniques to control for the endogeneity of corruption and investment. Corruption has a significant effect on the growth rate of real per capita income. This effect is non-linear.