Corruption, Structural Reforms, and Economic Performance in the Transition Economies

By G. Abed, Hamid R. Davoodi. Social Science Research Network, 2000

316 citations recorded by the source corpus.

Recent studies have highlighted the adverse impact of corruption on economic performance. This paper advances the hypothesis that corruption is largely a symptom of underlying weaknesses in public policies and institutions, a formulation that provides deeper insights into economic performance than do measures of perceived corruption. The hypothesis is tested by assessing the relative importance of structural reforms vs. corruption in explaining macroeconomic performance in the transition economies. The paper finds that for four widely used measures of economic performance - growth, inflation, the fiscal balance, and foreign direct investment - structural reforms tend to dominate the corruption variable.

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Citations in the corpus

THE DETERMINANTS OF CORRUPTION A Literature Survey and New Evidence (2006, background): “This phenomenon is usually found in the public sector as it primarily involves government officials.(1) In the words of Nye (1967, p.”
Can Corruption Ever Improve an Economy (2007, background): “Abed and Davoodi (2000), perhaps reflecting a general consensus in developmental economics, argue that well-conceived and implemented structural economic reforms are an important means of rationalizing a market economy and rooting out corruption.”
Corruption and Human Development (2006, background): “Mauro (1996), Leite and Weideman (1999), Tanzi and Davoodi (2000), and Abed and Davoodi (2000) find a negative association between real per capita GDP growth and corruption. Mo (2001) investigates the relationship between corruption and economic growth (GDP growth). His empirical analysis reveals th”
Whither Corruption? A Quantitative Survey of the Literature on Corruption and Growth (2010, background): “Thus, in order to properly evaluate the effects of corruption one has to recognize its endogeneity with respect to institutions (Aidt, 2009). Theoretical analyses and empirical evidence supporting this view abound, showing that corruption sands the wheels of growth. Rock and Bonnett (2004) argue tha”
The Effects of Corruption on FDI Inflows (2009, methodology): “All these studies, with the exception of Abed and Davoodi’s (2000) study, use a cross-sectional methodology to test the relationship between corruption levels and FDI inflows and ignore the fact that corruption is a complex phenomenon.”
How Does Corruption Affect Public Debt? An Empirical Analysis (2017, background): “…has been found to reduce growth (Mauro, 1995; Mo, 2001; Tanzi & Davoodi, 2002), discourage investment (Brunetti, Kisunko, & Weder, 1998; Campos, Lien, & Pradhan, 1999; Mauro, 1996); reduce foreign direct investment (Abed & Davoodi, 2002; Wei, 2000), and limit productivity (Lambsdorff, 2003).”