2006
DOI: 10.1177/0192512106061423
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Corruption, Democracy, and Economic Growth

Abstract: Scholars have long suspected that political processes such as democracy and corruption are important factors in determining economic growth. Studies show, however, that democracy has only indirect effects on growth, while corruption is generally accepted by scholars as having a direct and negative impact on economic performance. We argue that one of democracy's indirect benefits is its ability to mitigate the detrimental effect of corruption on economic growth. Although corruption certainly occurs in democraci… Show more

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Cited by 216 publications
(147 citation statements)
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References 43 publications
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“…Concerning the hypothesis that there may not only be more corruption in autocracies, but that the impact of this corruption also may be stronger because corrupt practices will be more "ruthless", Drury et al (2006) find indeed that corruption has no significant effect on economic growth in democracies, but that corruption significantly reduces growth in non-democracies. Along the same line, Bhattacharyya and Hodler (2010) find that natural resources in a country can feed corruption when the quality of the democratic institutions is weak, while countries with strong democratic institutions do not suffer from this perverse link between natural resources and corruption.…”
Section: The Relationship Between Democracy and Corruption In The Datamentioning
confidence: 83%
See 1 more Smart Citation
“…Concerning the hypothesis that there may not only be more corruption in autocracies, but that the impact of this corruption also may be stronger because corrupt practices will be more "ruthless", Drury et al (2006) find indeed that corruption has no significant effect on economic growth in democracies, but that corruption significantly reduces growth in non-democracies. Along the same line, Bhattacharyya and Hodler (2010) find that natural resources in a country can feed corruption when the quality of the democratic institutions is weak, while countries with strong democratic institutions do not suffer from this perverse link between natural resources and corruption.…”
Section: The Relationship Between Democracy and Corruption In The Datamentioning
confidence: 83%
“…In other words, it is the accountability of politicians to the citizens that control corruption. In authoritarian states this is not the case: the prediction therefore would be that corruption will be more ruthless in such countries (Drury et al, 2006). Recalling corrupt practices of dictators such as Mobuto, Suharto or Sani Abacha, and the evidence of the top 20 least corrupt countries being all democracies, seem to provide some anecdotal evidence for this.…”
Section: Awhy Democracy May Help In Controlling Corruption?mentioning
confidence: 99%
“…Thus corrupt incumbents may lose votes but not enough to deny them reelection, as long as they keep the level of corruption in check and do not allow it to damage overall economic performance significantly. This may explain why the level of corruption is lower in democratic countries, as Pellegrini and Gerlagh (2008) and Lederman et al (2005) find, and why its harm on economic growth is less, as Drury et al (2006) point out.…”
Section: Review Of Corruption Literaturementioning
confidence: 94%
“…Una respuesta puede ser que a la gente le interesa el desempeño efectivo de gobierno con independencia de que los políticos estén obteniendo beneficios privados de las finanzas públicas. Al respecto, existe evidencia de que la corrupción en democracia no inhibe el crecimiento económico, por lo que podría ocurrir que convivan corrupción con buen desempeño (Drury et al, 2006). En los años analizados salvo 2009, los electores bolivianos se diferencian del resto de latinoamericanos por no vincular su satisfacción con la democracia y su percepción de la corrupción.…”
Section: Latinoamericanos 43unclassified