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 …

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 …

are derived by combining figures from different estimation methods. We describe and discuss the strengths and weaknesses … 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 …