Corruption and Economic Growth in Developing Countries
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Date
2007
Authors
Journal Title
Journal ISSN
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Publisher
Suleyman Demirel University
Abstract
This paper examines the relationship between corruption and economic growth in developing countries. While traditional growth models, such as the Solow model and later extensions that include human capital, emphasize productivity, education, and investment, they often overlook the influence of cultural values on economic development. The study argues that corruption is not merely an economic or institutional issue, but one rooted in cultural and social norms. Building on work by Hall and Jones, the research proposes that differences in growth outcomes are linked to variations in social infrastructure, which is shaped by cultural factors including religion, language, and ethnic composition. Using ethnolinguistic fractionalization indices as instrumental variables, the study seeks to identify how culture affects government policy quality and corruption levels, which in turn impact productivity and output per capita. The paper concludes that combating corruption requires not only institutional reforms but also long-term cultural change.
Description
Keywords
corruption, culture, social values, institutions, dovernment policy, developing countries
Citation
Yessengali Oskenbayev / Corruption and Economic Growth in Developing Countries / Suleyman Demirel University / Сду хабаршысы, 2007