The Efficient Corruption Hypothesis and the Dynamics Between Economic Freedom, Corruption, and National Income

Hall, Joshua C.; Levendis, John; Scarcioffolo, Alexandre Ribeiro

doi:10.1353/jda.2020.0031

Cited by 15 publications

(10 citation statements)

References 43 publications

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“…In short, our results support the evidence that corruption and a low level of economic freedom negatively affect economic growth. Similar results are found in [23].…”

Section: Discussionsupporting

confidence: 90%

“…CD statistics do not reject the null hypothesis of independence between cross-sections 1 The CP measures the anti-corruption efforts of one country relative to other countries ranging from 0 to 100. For more details about this index see [23]. The corruption perception index is not suitable for this paper due to missing information at the beginning of the sample.…”

Section: Resultsmentioning

confidence: 99%

“…Few studies analyze the relationship between this set of variables. An example is [23], which estimates a panel VAR (PVAR) and finds evidence that corruption and a low level of economic freedom have a negative effect on national income.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

Leite¹,

Lúcio²,

Ferreira³

2019

TEL

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Theoretical models and empirical evidence show that corruption control and economic openness have effects on economic growth. This paper aims to estimate the long-term effects of the anti-corruption effort and economic freedom on economic growth in a sample of 121 countries. We use autoregressive distributed lag (ARDL) models and estimation techniques appropriate to the case where there is a correlation between cross-section errors possibly generated by spillover effects. Besides, estimates of ARDL models are consistent even with endogenous regressors and integrated variables. The results indicate that economic growth of a country can be positively and significantly affected by the long-term corruption control and economic freedom.

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“…In short, our results support the evidence that corruption and a low level of economic freedom negatively affect economic growth. Similar results are found in [23].…”

Section: Discussionsupporting

confidence: 90%

Section: Resultsmentioning

confidence: 99%

See 1 more Smart Citation

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

Leite¹,

Lúcio²,

Ferreira³

2019

TEL

View full text Add to dashboard Cite

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“…Previous reviews of the sociology of corruption tend to focus on facilitating interdisciplinary communication (see Jancsics, 2014) and generating less ethnocentric and more material based depictions of corruption (Zaloznaya, 2014). While the majority of this literature focuses on breaking away from an interpersonal rational‐choice description of corruption, this review seeks to focus on literature that identifies broad cross‐national trends in the material inequalities that corruption facilitates concerning the natural environment, specifically forest loss (see Alon et al., 2016; Bardhan, 1997; De la Croix & Delavallade, 2011; Enste & Heldman, 2017; Hall et al., 2020; Povitkina, 2018; Rose‐Ackerman, 1996, 1997, 1999, 2017; Warren, 2004). Corruption, often defined in the cross‐national literature as the illegal distribution of goods, services, jobs, and money in exchange for political support, is thought to impact the natural environment through 1) the misuse of funds, 2) ignoring, getting around, or not following laws, and 3) making and changing laws to better suit ones interests.…”

Section: Introductionmentioning

confidence: 99%

The impacts of corruption on forest loss: A review of cross‐national trends

Sommer

2022

Sociology Compass

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This research lays out the debates and contradictory findings regarding the impacts of corruption on forest loss in a cross‐national context, specifically in low‐ and middle‐income nations. After, I describe how these inconsistent findings may be due to difficulties in untangling the complexities of corruption definitionally and then operationalizing it in a cross‐national context. Then, I review the advances in corruption data collection and measurement. Finally, I discuss how these developments in data collection and operationalization have led to an expansion of research on corruption to other aspects of governance, bringing forward several avenues for future research, but also potentially conflating definitions of corruption with governance. Overall, I aim to capture how scholars are studying corruption and forest loss from a cross‐national context and what their findings tell us.

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“…Second, we contribute to the literature that examines firms’ use of non‐market strategies to gain competitive advantages, such as engaging in unethical or corrupt activities (Hall et al, 2020; Iriyama et al, 2016; Méon & Weill, 2010; Xie et al, 2019). Corruption presents an ethical dilemma for firm management.…”

Section: Introductionmentioning

confidence: 99%

Public corruption and the allocation of government contracts

Wei

Zhu

2021

Rev Financ Econ

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Public corruption in the government procurement process is rampant and its cost is huge, even among developed countries. Some scholars estimate that about 20%–30% of the values of government projects are lost due to public corruption. In this paper, we examine how public corruption impacts the allocation of U.S. federal contracts. Using the U.S. Department of Justice corruption convictions data and the federal contract data from 2000 to 2018, we find that firms located in more corrupt states receive more federal contract dollars, more important contracts in terms of their contributions to firm revenues, and contracts with higher visibility among federal contractors. We construct an influence/favoritism index that takes into account defense contracts, cost‐plus contracts, and multi‐year contracts, and document that the index is positively related to corruption levels. These results hold after we conduct several robustness tests, including 2SLS regressions, propensity‐score matching analysis, and using alternative corruption measures. Our empirical findings are consistent with the hypothesis that corruption plays an important role in how federal contracts are allocated.

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The Efficient Corruption Hypothesis and the Dynamics Between Economic Freedom, Corruption, and National Income

Cited by 15 publications

References 43 publications

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth

The impacts of corruption on forest loss: A review of cross‐national trends

Public corruption and the allocation of government contracts

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