Estimating the Effects of Corruption : Implications for Bangladesh

Rahman, Aminur ; Kisunko, Gregory ; Kapoor, Kapil

World Bank, Washington, DC

关键词: ACCOUNTABILITY;    ADVERSE EFFECTS;    ALLOCATION OF RESOURCES;    ALLOCATIVE EFFICIENCY;    AUTHORITY;   

DOI  :  10.1596/1813-9450-2479
RP-ID  :  WPS2479

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Building on the pioneering work of Barro(1991) and Mauro (1995) to include the most recent years forwhich data are available (for Bangladesh in the 1990s), theauthors investigate the relationships between corruption,and growth, and, between corruption and investment, bothdomestic and foreign, to see whether they have changed fromearlier decades. Then they move away from Mauro'simplicit assumption that the corruption index value for arelatively short period of time, can be used as a proxy forthe long run, and further augment Mauro's model byincluding significant regional dummy variables, in anattempt to take account of various region-specific effects.The authors also analyze the sensitivity of corruption inthe presence, and absence of various policy, geographic, anddemographic variables that are widely used in empiricalgrowth, and investment literature. The findings suggest thatcountries serious about improving governance, and reducingcorruption, should redefine the role of government, overhaulthe system of incentives, and strengthen domesticinstitutions, to make sure the necessary checks, andbalances are in place. Such an approach to reform would helpattract more investment - both domestic and foreign - andwould accelerate economic growth, and poverty reduction.