Corruption and Growth: A Nexus Revisited

Abstract

This study revisits the relationship between corruption and growth. The different indices are used to measure the corruption but this study uses the corruption perception index. We estimated the conventional Barro equation along with the set of control variables, using annual data series for 104 countries. The results indicate a negative impact of corruption on GDP per capita but it does not affect the GDP growth. It is suggested that authorities should concentrate on anticorruption policies along with other economic and non-economic reforms to enhance the level of GDP.