Does Corruption Influence Economic Development.pdf

1、In recent years，the growing number of interest among scholars and policymaker on corruption and growth has been seen on cross-country measurement on institutional quality and good governance. Corruption seems to play an

2、important role in many factors specially in determining the quality of institution and GDP growth rate. In accordance with this many scholars also argued that there is a geographical effect and policy effect that determi

3、nes economic growth. The purpose of this paper is the find this linkage between these variables those effect economic growth. In this paper I used various combination of variables with various combination of regression e

4、stimation among the indicator to find out th e robustness of the result. I use OLS，2SLS，IV (Instrument Variable) and OIR (Overidentifying Restrictions) test to find the results. A sample of 218 country is taken for the r

5、egression analysis. The results indicates that human development and rule of law explains cross-country variation in economic development through their effect on corruption index. Higher human development and higher rule

6、 of law is associated with higher corruption index (meaning lower corruption) and better economic growth. The results also gives an intuition that corruption can be cured by increasing these two variables，human developme