Corruption and Productivity

Author

Chris Kelly, Clemson UniversityFollow

Date of Award

12-2014

Document Type

Thesis

Degree Name

Master of Arts (MA)

Legacy Department

Economics

Committee Chair/Advisor

Dr. Scott Baier

Committee Member

Dr. Scott Templeton

Committee Member

Dr. Robert Tamura

Abstract

Corruption is suggested to have a negative impact on productivity and thus growth. Several studies have studied the relationship closely, including Hall and Jones (1999) and Lambsdorff (2003). This paper seeks to build on their foundation and specify a new and robust model by looking at the effect of corruption controls on total factor productivity through a two-stage least squares regression. Since it is through public institutions that corruption manifests, also examined are differences between `inclusive' and `extractive' institutions. Also important is the degree to which a state is centralized. Extraction by way of corrupt institutions differs in highly centralized states and highly disordered states. It is through this framework that the relationship between productivity and corruption is analyzed.

Recommended Citation

Kelly, Chris, "Corruption and Productivity" (2014). All Theses. 2025.
https://open.clemson.edu/all_theses/2025