Corruption is known to reduce the ratio of investment to GDP. This study breaks down investment into domestic savings and net capital inflows. A significant impact of corruption exists only for the latter variable because the first variable is distorted by general equilibrium repercussions. An...

Corruption research has centered on three fundamental questions: What determines corruption? What effects does corruption have? And finally, what can we do to reduce corruption effectively and efficiently? Corruption has been, and continues to be researched so intensively that it is hard to keep...