Corruption and Economic Growth: A South Korean Study
DOI:
https://doi.org/10.6000/1929-7092.2015.04.01Keywords:
Economic Growth, Corruption, Private Investment, Vector Autoregressive ModelAbstract
Using a vector autoregressive model (VAR) with 42 years of South Korean annual data, we empirically investigate two possible links between corruption and economic growth. Even though we find negative correlations between corruption and other growth variables such as private investment, we do not find any strong empirical evidence supporting negative correlations between corruption and economic growth. Our results are similar to previous empirical findings and seem to be another empirical mismatch between micro and macro level data.
References
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http://dx.doi.org/10.2307/2946696
Mo, P. H. (2001) “Corruption and Economic Growth.” Journal of Comparative Economics, 29, pp. 66-79.
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http://dx.doi.org/10.2307/2937945
Murphy, K., Shleifer, A and Vishny, R. (1993) “Why is Rent-seeking so Costly to Growth?” American Economic Review, 83:2, pp. 409-14.
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http://dx.doi.org/10.1257/089533005774357860
http://dx.doi.org/10.1111/1468-0297.00347
Bates, R. H. (1981) Markets and States in Tropical Africa: The Political Basis of Agricultural Policy. Berkeley: University of California Press.
De Soto, H. (1989) The Other Path. New York: Harper and Row.
Groningen Growth and Development Center. Penn World Table version 8.0. http://www.rug.nl/research/ggdc/data/penn-world-table
Huntington, S. (1968) Political Order in Changing Societies. New Haven: Yale University Press
Khwaja, A. I., and Mian, A. (2004) “Do Lenders Favor Politically Connected Firms? Rent Provision in an Emerging Financial Market.” Manuscript, Kennedy School of Government, Harvard University.
Leff, N. H. (1964) “Economic Development through Bureaucratic Corruption.” American Behavioral Scientist, 82:2, pp. 337-41.
Levine, R., and Renelt, D. (1992) “A Sensitivity Analysis of Cross-Country Growth Regressions.” American Economic Review, 82:4, pp. 942-963.
Lui, F. T. (1985) “A Equilibrium Queuing Model of Bribery.” Journal of Political Economy, 93:4, pp. 760-81.
http://dx.doi.org/10.1086/261329
Mauro, P. (1995) “Corruption and Growth.” Quarterly Journal of Economics, 110, pp. 681-712.
http://dx.doi.org/10.2307/2946696
Mo, P. H. (2001) “Corruption and Economic Growth.” Journal of Comparative Economics, 29, pp. 66-79.
http://dx.doi.org/10.1006/jcec.2000.1703
Murphy, K., Shleifer, A. and Vishny, R. (1991) “The Allocation of Talent: Implications for Growth.” Quarterly Journal of Economics, 106, pp. 503-30.
http://dx.doi.org/10.2307/2937945
Murphy, K., Shleifer, A and Vishny, R. (1993) “Why is Rent-seeking so Costly to Growth?” American Economic Review, 83:2, pp. 409-14.
Supreme Prosecutors’ Office. (1971-2012) Analytical Report on Crimes. Seoul
Svensson, J. (2003) “Who Must Pay Bribes and How Much?” Quarterly Journal of Economics, 118:1, pp. 207-30.
http://dx.doi.org/10.1162/00335530360535180
Svensson, J. (2005) “Eight Questions about Corruption.” Journal of Economic Perspectives, 19:3, pp. 19-42.
http://dx.doi.org/10.1257/089533005774357860
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Published
2015-02-06
How to Cite
Kim, C.-U., & Lim, G. (2015). Corruption and Economic Growth: A South Korean Study. Journal of Reviews on Global Economics, 4, 1–7. https://doi.org/10.6000/1929-7092.2015.04.01
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