How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income
Autor(a) principal: | |
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Data de Publicação: | 2001 |
Outros Autores: | , |
Tipo de documento: | Artigo |
Idioma: | eng |
Título da fonte: | Repositório Institucional do FGV (FGV Repositório Digital) |
Texto Completo: | http://hdl.handle.net/10438/1953 |
Resumo: | Corruption is a phenomenon that plagues many countries and, mostly, walks hand in hand with inefficient institutional structures, which reduce the effectiveness of public and private investment. In countries with widespread corruption, for each monetary unit invested, a sizable share is wasted, implying less investment. Corruption can also be a burden on a nation’s wealth and economic growth, by driving away new investment and creating uncertainties regarding private and social rights. Thus, corruption can affect not only factors productivity, but also their accumulation, with detrimental consequences on a society’s social development. This article aims to analyze and measure the influence of corruption on a country’s wealth. It is implicitly admitted that the degree of institutional development has an adverse effect on the productivity of production factors, which implies in reduced per capita income. It is assumed that the level of wealth and economic growth depends on domestic savings, foster technological progress and a proper educational system. Corruption, within this framework, is not unlike an additional cost, which stifles the 'effectiveness' of the investment. This article first discusses the key theories evaluating corruption’s economic consequences. Later, it analyzes the relation between institutional development, factor productivity and per capita income, based on the neoclassical approach to economic growth. Finally, it brings some empirical evidence regarding the effects of corruption on factor productivity, in a sample of 81 countries studied in 1998. The chief conclusion is that corruption negatively affects the wealth of a nation by reducing capital productivity, or its effectiveness. |
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Bandeira, Andrea CamaraGarcia, FernandoSilva, Marcos Fernandes Gonçalves daEscolas::EESP2008-10-16T19:10:19Z2008-10-16T19:10:19Z2001-07-012001-07-01T00:00:00Zhttp://hdl.handle.net/10438/1953Corruption is a phenomenon that plagues many countries and, mostly, walks hand in hand with inefficient institutional structures, which reduce the effectiveness of public and private investment. In countries with widespread corruption, for each monetary unit invested, a sizable share is wasted, implying less investment. Corruption can also be a burden on a nation’s wealth and economic growth, by driving away new investment and creating uncertainties regarding private and social rights. Thus, corruption can affect not only factors productivity, but also their accumulation, with detrimental consequences on a society’s social development. This article aims to analyze and measure the influence of corruption on a country’s wealth. It is implicitly admitted that the degree of institutional development has an adverse effect on the productivity of production factors, which implies in reduced per capita income. It is assumed that the level of wealth and economic growth depends on domestic savings, foster technological progress and a proper educational system. Corruption, within this framework, is not unlike an additional cost, which stifles the 'effectiveness' of the investment. This article first discusses the key theories evaluating corruption’s economic consequences. Later, it analyzes the relation between institutional development, factor productivity and per capita income, based on the neoclassical approach to economic growth. Finally, it brings some empirical evidence regarding the effects of corruption on factor productivity, in a sample of 81 countries studied in 1998. The chief conclusion is that corruption negatively affects the wealth of a nation by reducing capital productivity, or its effectiveness.engTextos para Discussão;103Capital accumulationInstitutional economicsEconomic growthCorruptionFactor productivityZ00A40A19EconomiaCorrupção administrativa - Aspectos econômicosDesenvolvimento econômicoHow does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita incomeinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/articlereponame:Repositório Institucional do FGV (FGV Repositório Digital)instname:Fundação Getulio Vargas (FGV)instacron:FGVinfo:eu-repo/semantics/openAccessORIGINALTD103.pdfapplication/pdf105670https://repositorio.fgv.br/bitstreams/506dbad0-cfe4-4153-a5e5-a85afe7f2b0b/downloada863d3c04f4d0481e497438592cab9ecMD51TEXTTD103.pdf.txtTD103.pdf.txtExtracted texttext/plain61829https://repositorio.fgv.br/bitstreams/2efa912a-d062-48b7-9a7c-f5db42d0c08e/downloade54fe46fabcab2196a7ed9cd73c46094MD56THUMBNAILTD103.pdf.jpgTD103.pdf.jpgGenerated Thumbnailimage/jpeg5139https://repositorio.fgv.br/bitstreams/eb0925f0-05e4-471c-9863-be70e6cfb164/download6f7b1591c59d1efa122ac6d00a39f855MD5710438/19532023-11-08 08:34:06.6open.accessoai:repositorio.fgv.br:10438/1953https://repositorio.fgv.brRepositório InstitucionalPRIhttp://bibliotecadigital.fgv.br/dspace-oai/requestopendoar:39742023-11-08T08:34:06Repositório Institucional do FGV (FGV Repositório Digital) - Fundação Getulio Vargas (FGV)false |
dc.title.eng.fl_str_mv |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
title |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
spellingShingle |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income Bandeira, Andrea Camara Capital accumulation Institutional economics Economic growth Corruption Factor productivity Z00 A40 A19 Economia Corrupção administrativa - Aspectos econômicos Desenvolvimento econômico |
title_short |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
title_full |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
title_fullStr |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
title_full_unstemmed |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
title_sort |
How does corruption hurt growth? Evidences about the effects of corruption on factors productivity and per capita income |
author |
Bandeira, Andrea Camara |
author_facet |
Bandeira, Andrea Camara Garcia, Fernando Silva, Marcos Fernandes Gonçalves da |
author_role |
author |
author2 |
Garcia, Fernando Silva, Marcos Fernandes Gonçalves da |
author2_role |
author author |
dc.contributor.unidadefgv.por.fl_str_mv |
Escolas::EESP |
dc.contributor.author.fl_str_mv |
Bandeira, Andrea Camara Garcia, Fernando Silva, Marcos Fernandes Gonçalves da |
dc.subject.eng.fl_str_mv |
Capital accumulation Institutional economics Economic growth Corruption Factor productivity |
topic |
Capital accumulation Institutional economics Economic growth Corruption Factor productivity Z00 A40 A19 Economia Corrupção administrativa - Aspectos econômicos Desenvolvimento econômico |
dc.subject.classification.por.fl_str_mv |
Z00 A40 A19 |
dc.subject.area.por.fl_str_mv |
Economia |
dc.subject.bibliodata.por.fl_str_mv |
Corrupção administrativa - Aspectos econômicos Desenvolvimento econômico |
description |
Corruption is a phenomenon that plagues many countries and, mostly, walks hand in hand with inefficient institutional structures, which reduce the effectiveness of public and private investment. In countries with widespread corruption, for each monetary unit invested, a sizable share is wasted, implying less investment. Corruption can also be a burden on a nation’s wealth and economic growth, by driving away new investment and creating uncertainties regarding private and social rights. Thus, corruption can affect not only factors productivity, but also their accumulation, with detrimental consequences on a society’s social development. This article aims to analyze and measure the influence of corruption on a country’s wealth. It is implicitly admitted that the degree of institutional development has an adverse effect on the productivity of production factors, which implies in reduced per capita income. It is assumed that the level of wealth and economic growth depends on domestic savings, foster technological progress and a proper educational system. Corruption, within this framework, is not unlike an additional cost, which stifles the 'effectiveness' of the investment. This article first discusses the key theories evaluating corruption’s economic consequences. Later, it analyzes the relation between institutional development, factor productivity and per capita income, based on the neoclassical approach to economic growth. Finally, it brings some empirical evidence regarding the effects of corruption on factor productivity, in a sample of 81 countries studied in 1998. The chief conclusion is that corruption negatively affects the wealth of a nation by reducing capital productivity, or its effectiveness. |
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2001 |
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2001-07-01T00:00:00Z |
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2001-07-01 |
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2008-10-16T19:10:19Z |
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2008-10-16T19:10:19Z |
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