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Is Corruption an Efficient Grease?
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DOI：10.1016/j.worlddev.2009.06.004.png)
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This paper tests whether corruption may be an efficient grease in the wheels of an otherwise deficient institutional framework It analyzes the interaction between aggregate efficiency, corruption, and other dimensions of governance for a panel of 69 countries. both developed aid developing. Using two measures of corruption and two other aspects of governance we observe that corruption is less determined to efficiency in countries where instructions are less effective. It may even be positively associated with efficiency in countries where institutions are extremely ineffective. We thus find evidence for the grease the wheels hypothesis in its weak and strong forms (C) 2009 Elsevier Ltd. All rights reserved.
Keyword:
governance
corruption
income
aggregate productivity
efficiency
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