This paper presents estimates of the size of the shadow economy in 76 developing, transition, and OECD countries, which … of the different estimation methods. We find that the growth of the shadow economy—which is now remarkably large in the … extent of state regulatory activities. Rising corruption also has a clearly positive impact on the growth of the shadow …

Anecdotal evidence relates corruption with high levels of military spending. This paper tests empirically whether such … the period 1985–98. The association between military spending and corruption is ascertained by using panel regression … techniques. The results suggest that corruption is indeed associated with higher military spending as a share of both GDP and …

Corruption, particularly political or “grand” corruption, distorts the entire decision-making process connected with … shows that higher corruption is associated with (i) higher public investment; (ii) lower government revenues; (iii) lower … corruption increases public investment while reducing its productivity. These are five channels through which corruption lowers …