INSTITUTIONS’ IMPACT ON THE CORRUPTION–GROWTH NEXUS: NONLINEARITIES AND TRANSMISSION CHANNELS - Archive ouverte HAL Access content directly
Journal Articles Macroeconomic Dynamics Year : 2021

INSTITUTIONS’ IMPACT ON THE CORRUPTION–GROWTH NEXUS: NONLINEARITIES AND TRANSMISSION CHANNELS

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Réda Marakbi
Camélia Turcu
Patrick Villieu

Abstract

Abstract We analyze the channels through which institutional quality can impact the corruption–growth nexus. To do this, we develop an endogenous growth model and test its implications empirically, through panel data models using GMM and PSTR settings. Our sample consists of 136 developed and developing countries analyzed over the period 1984–2015. We show, both theoretically and empirically, that (i) the corruption–growth relation can be subject to nonlinearities highly influenced by countries’ institutional development; and (ii) private investment and public spending are two main channels through which institutional quality affects, positively or negatively, the relation between corruption and economic growth.
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hal-03529772 , version 1 (17-01-2022)

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Réda Marakbi, Camélia Turcu, Patrick Villieu. INSTITUTIONS’ IMPACT ON THE CORRUPTION–GROWTH NEXUS: NONLINEARITIES AND TRANSMISSION CHANNELS. Macroeconomic Dynamics, 2021, 25 (1), pp.257-279. ⟨10.1017/S1365100519000452⟩. ⟨hal-03529772⟩
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