The level of productivity is correlated across countries with measures of (lack of) corruption, but this appears to be due to a common association of these variables with measures of civil infrastructure, here measured by a combination of governance indexes labelled 'rule of law' and 'government...

Within a production function framework in which government spending produces public goods which enter firms’ production functions, empirical tests using time series data spanning eleven countries and thirty industries find both the scale and the composition of government consumption spending...