Post by Sapphire Capital on Jan 22, 2009 22:28:27 GMT 4
Is Corruption an Efficient Grease?
Pierre-Guillaume Meon
Université Libre de Bruxelles (ULB); Université Robert Schuman Strasbourg III
Laurent Weill
Université Robert Schuman Strasbourg III
November 12, 2008
BOFIT Discussion Paper No. 20/2008
Abstract:
This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using three measures of corruption and five measures of other aspects of governance, we observe that corruption is consistently detrimental in countries where institutions are effective, but that it may be positively associated with efficiency in countries where institutions are ineffective. We thus find evidence of the grease the wheels hypothesis.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1304596_code839764.pdf?abstractid=1304596&mirid=3
Pierre-Guillaume Meon
Université Libre de Bruxelles (ULB); Université Robert Schuman Strasbourg III
Laurent Weill
Université Robert Schuman Strasbourg III
November 12, 2008
BOFIT Discussion Paper No. 20/2008
Abstract:
This paper tests whether corruption may act as an efficient grease for the wheels of an otherwise deficient institutional framework. We analyze the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 54 developed and developing countries. Using three measures of corruption and five measures of other aspects of governance, we observe that corruption is consistently detrimental in countries where institutions are effective, but that it may be positively associated with efficiency in countries where institutions are ineffective. We thus find evidence of the grease the wheels hypothesis.
papers.ssrn.com/sol3/Delivery.cfm/SSRN_ID1304596_code839764.pdf?abstractid=1304596&mirid=3