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Corruption and Growth: Evidence from the Italian regions

European Journal of Government and Economics

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Title Corruption and Growth: Evidence from the Italian regions
Creator Fiorino, Nadia
Galli, Emma
Petrarca, Ilaria
Subject corruption; associative crimes; economic growth; dynamic estimation
H11; O40; O38
Description This paper investigates the impact of corruption on economic growth in the Italian Regions. We estimate a dynamic growth model for the period 1980-2004 addressing both the potential bias of the measures of corruption and the endogeneity between corruption and economic development. We find strong evidence of a negative correlation between corruption and growth. Moreover, since government intervention has been traditionally used to reduce income differentials between the Northern and the Southern regions, we also analyze the interaction between corruption and government expenditure. Our results indicate that corruption undermines the positive impact that public expenditures have on economic growth.
Publisher Europa Grande
Date 2012-12-31
Type info:eu-repo/semantics/article
Peer-reviewed Article
Format application/pdf
Source European Journal of Government and Economics; Vol 1, No 2 (2012); 126-144
Language eng
Rights Copyright (c) 2012 Nadia Fiorino, Emma Galli, Ilaria Petrarca