Monday, July 22, 2019

24 July 2019: Does Corruption In Autocracies Growth-Intensifying? An Empirical Study Of East Asian Paradox

Shrabani Saha
Lincoln International Business School, University of Lincoln

Saon Ray, ICRIER

Corruption is widely believed to negatively affect economic growth. However, many countries in East and Southeast Asia, either achieved or currently are achieving impressively rapid economic growth despite widespread corruption. Is this negative relationship equally likely to hold for autocracies and democracies? This paper examines the role of the political regime in mediating corruption-growth relationship using panel data over one hundred countries for the period 1984-2016. We find clear and unambiguous evidence that corruption-growth relationship differs by political regime, and the growth enhancing effect of corruption is more likely in autocracies than in democracies. The marginal effect analysis shows that in strongly autocratic countries, higher corruption may actually lead to significantly higher growth, while this is not the case in democracies. Hence, our findings support East Asian Paradox.

Date: July 24, 2019
Time: 03:00 P.M.

ICRIER Conference Room (Ground Floor),
Plot No. 16&17, Pushp Vihar Institutional Area,
Sector 6, Saket,
New Delhi-110017


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