Abstract
This paper analyzes a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries. Corruption is found to lower investment, thereby lowering economic growth. The results are robust to controlling for endogeneity by using an index of ethnolinguistic fractionalization as an instrument.
Keywords
Affiliated Institutions
Related Publications
A Note on the Theme of Too Many Instruments<sup>*</sup>
Abstract The difference and system generalized method of moments (GMM) estimators are growing in popularity. As implemented in popular software, the estimators easily generate i...
Inequality and Violent Crime
We investigate the robustness and causality of the link between income inequality and violent crime across countries. First, we study the correlation between the Gini index and ...
Democracy Does Cause Growth
We provide evidence that democracy has a positive effect on GDP per capita. Our dynamic panel strategy controls for country fixed effects and the rich dynamics of GDP, which oth...
Publication Info
- Year
- 1995
- Type
- article
- Volume
- 110
- Issue
- 3
- Pages
- 681-712
- Citations
- 8167
- Access
- Closed
External Links
Social Impact
Social media, news, blog, policy document mentions
Citation Metrics
Cite This
Identifiers
- DOI
- 10.2307/2946696