The prevailing view is that corruption has adverse effects on investment and economic growth. However, some studies claim that bribery and corruption can have positive effects on growth.
This result indeed fuels the so-called debate, whether corruption is growth-enhancing or growth-reducing, following two approaches: corruption as oil and corruption as sand in the machine, respectively. This project examines the effect of corruption on economic growth in a non-linear framework to determine whether results are consistent with the theory.
Research question:
- Is corruption growth-enhancing rather than growth-inhibitory?
Research method:
- Using a panel estimation technique.
Researchers:
- Dr Shrabani Saha (Chief Investigator)
- Dr Girija Shankar Mallik (Associate Investigator, University of Western Sydney).
Timeline:
September 2011 - October 2012.