Macro Corruption: A Conceptual Analysis of Its Dimensions and Forward and Backward Linkages
Commenced in January 2007
Frequency: Monthly
Edition: International
Paper Count: 33122
Macro Corruption: A Conceptual Analysis of Its Dimensions and Forward and Backward Linkages

Authors: Ahmed Sakr Ashour, Hoda Saad AboRemila

Abstract:

An attempt was made to fill the gap in the macro analysis of corruption by suggesting a conceptual framework that differentiates four types of macro corruption: state capture, political, bureaucratic and financial/corporate. The economic consequences or forward linkages (growth, inclusiveness and sustainability of development) and macro institutional determinants constituting the backward linkages of each type were delineated. The research implications of the macro perspective and proposed framework were discussed. Implications of the findings for theory, research and reform policies addressing macro corruption issues were discussed.

Keywords: Economic growth, Inclusive growth, macro corruption, sustainable development.

Digital Object Identifier (DOI): doi.org/10.5281/zenodo.2021841

Procedia APA BibTeX Chicago EndNote Harvard JSON MLA RIS XML ISO 690 PDF Downloads 850

References:


[1] D. Acemoglu and T. Verdier, “Property rights, corruption and the allocation of talent: A general equilibrium approach” in Economic Journal, vol. 108, 1998, pp. 1381-1403.
[2] S. Aidt, “Economic analysis of corruption: A survey” in Economic Journal, no.113, 2003, 632- 652.
[3] S. Aidt, J. Dutta, and V. Sena, “Growth, governance and corruption in the presence of threshold effects: theory and evidence”. Cambridge Working Papers in Economics. Cambridge: University of Cambridge, 2005.
[4] S. Aidt, J. Dutta, and V. Sena, ”Governance regimes, corruption and growth: theory and evidence” in. Journal of Comparative Economics, vol. 36, no. 2, 2008, pp. 195-220.
[5] S. Aidt, “Corruption, institutions and economic development”. Working Papers in Economics 0918, 2009.
[6] S. Aidt, “Corruption and sustainable development. Cambridge”. Working Papers in Economics 1061, Faculty of Economics, University of Cambridge, 2010.
[7] C. Ake, Democracy and Development in Africa. Washington DC: The Brookings Institutions, 1996.
[8] C. Andrig, and O. Moene, “How corruption may corrupt” in Journal of Economic Behavior and Organization, vol. 13, no. 1, 1996, pp. 63-76.
[9] G. Atkinson, and K. Hamilton, “Saving, growth and the resource curse hypothesis”, in World Development, vol. 31, 2003, pp. 1793-1807.
[10] M. Auty, Sustaining development in mineral economies. London: Routledge, 1993.
[11] P. Beck, and M. Maher, “A comparison of bribery and bidding in thin markets’ in Economics Letters, vol. 20, no, 1, 1986, pp. 1-5.
[12] K. Blackburn, B. Niloy, and H. Emranul, “The incidence and persistence of corruption in economic development” in Journal of Economic Dynamics and Control, vol. 30, 2006, pp. 2447- 2467.
[13] K. Blackburn, B. Niloy, and H. Emranul, “Endogenous corruption in economic development”. Unpublished Working Paper, Department of Economics, University of Wisconsin, 2008.
[14] G. Broadman, and R. Francesca, “Seeds of corruption - Do market institutions matter?” Policy, Research working paper; no. WPS 2368. Washington, DC: World Bank, 2000.
[15] Commission on Growth and Development. The growth report strategies for sustained growth and inclusive development. Washington, DC: The International Bank for Reconstruction and Development- The World Bank, 2008.
[16] P. Conceição, R. Fuentes-Nieva, L. Horn-Phathanothai, and A. Ngororano, “Food security and human development in Africa: Strategic considerations and directions for further research in African Development Review, vol. 23, no. 2, 2011, pp. 237–246.
[17] C. Drury, J. Krieckhaus, and M. Lusztig, “Corruption, democracy, and economic growth” in International Political Science Review, vol. 27, no. 2, 2006, pp. 121-136.
[18] J. Ellis, and F. John. “Corruption and transparency in a growth model” in International Tax and Public Finance, vol. 13, no. 2-3, 2006, pp. 115-149.
[19] N. Groenendijk, “A principal-agent model of corruption’ in Crime, Law & Social Change, vol. 27, 1997, 207–229.
[20] T. Gylfason, “Natural resources, education and economic development” in European Economic Review, vol. 45, 2001, pp. 847-859.
[21] A. Hodge, S. Shankar, D. Rao, and A. Duhs, “Exploring the links between corruption and growth” in. Review of Development Economics, vol. 15, no. 3, 2011, pp. 474-490.
[22] Hodler, R. (2006). The curse of natural resources in fractionalized countries. European Economic Review, 50, 1367-1386.
[23] M. Humphreys, and R. Bates, “Political institutions and economic policies: Lessons from Africa” in. British Journal of Political Science, vol. 35, 2005, 403-428.
[24] P. Huntington, Political Order in Changing Societies. New Haven, Conn.: Yale University Press, 1968.
[25] E. Ianchovichina, and S. Lundstrom, “Inclusive growth analytics: Framework and application.”, Policy Research Working Paper No. 4851. Washington DC: World Bank, 2009.
[26] D. Kaufmann, “Corruption: The facts” in Foreign Policy, vol. 107, 1997, 114-131.
[27] D. Kaufmann, and S. Wei, “Does "grease money" speed up the wheels of commerce?”, National Bureau of Economic Research, Inc, NBER Working Papers: 7093, 1999.
[28] P. Krusell, and J. Rios-Rull, “Vested interests in a positive theory of stagnation and growth” in Review of Economic Studies, vol. 63, 1996, pp. 301-329.
[29] R. Lane, and A. Tornell, ”Power, growth, and the voracity effect” in Journal of Economic Growth, vol. 1, no. 2, 1996, 213-41.
[30] N. Leff, “Economic development through bureaucratic corruption” in American Behavioral Scientist, vol. 8, no. 3, 1964, pp. 8-14.
[31] C. Leith and M. Lofchie, “The Case of Ghana,” in Robert H. Bates and Anne O. Krueger, Political and Economic Interactions in Economic Policy Reform. Oxford: Blackwell, 1993.
[32] T. Lui, “An equilibrium queuing model of bribery” in Journal of Political Economy, vol. 93, no. 4, 1985, pp. 760-81.
[33] P. Mauro, “Corruption and growth” in Quarterly Journal of Economics, vol. 110, 1995, pp. 681-712.
[34] P. Mauro, “Corruption and composition of government expenditure” in Journal of Public Economics, vol. 69, 1998, pp. 263-279.
[35] H. Mehlum, M. Karland T. Ragnar, “Institutions and the resource curse” in Economic Journal, vol. 116, no. 508, 2006, pp. 1-20.
[36] H. Mo, “Corruption and economic growth” in Journal of Comparative Economics, vol. 29, 2001, pp. 66-79.
[37] M. Murphy, S. Andrei and V. Robert, “The allocation of talent: Implications for growth” in Quarterly Journal of Economics, vol.106, 1991, pp. 503-530.
[38] M. Murphy, S. Andrei and V. Robert, “Why is rent seeking so costly to growth?” in American Economic Review, vol. 83, 1993, pp. 409-414.
[39] G. Myrdal, Asian Drama: An Inquiry into the Poverty of Nations. New York: Twentieth Century Fund, 1968.
[40] E. Papurakis, and G. Reyer, “Resource windfalls, investment, and long-term income” in Resource Policy, vol. 31, 2006, pp. 117-1128.
[41] L. Pellegrini, and R. Gerlagh, “Corruption's effect on growth and its transmission channels” in Kyklos, vol. 57, 2004, pp. 429-456.
[42] L. Pritchett, and E. Werker, “Developing the guts of a GUT (Grand Unified Theory): Elite commitment and inclusive growth. ESID Working Paper Series 16/12, 2012.
[43] A. Robinson, R. Torvik, and T. Verdier, T. “Political foundations of the resource curse” in Journal of Development Economics, vol. 79, 2006, pp. 447-468.
[44] S. Rose-Ackerman, Corruption and government, causes, consequences and reform. Cambridge UK: Cambridge University Press, 1999.
[45] A. Seyf, “Corruption and development: A study of conflict” in Development in Practice, vol. 11, no. 5, 2001, pp. 597-605.
[46] V. Tanzi, “Corruption around the world: Causes, consequences, scope and cures” in IMF Staff Papers, vol. 45, no. 4, 1998, pp. 559-594.
[47] M. Ugur and N. Dasgupta, Evidence on the economic growth impacts of corruption in low income countries and beyond: A systematic review. London: EPPI-Centre, Social Science Research Unit, Institute of Education, University of London, 2001.
[48] B. Venard, “Institutions, corruption and sustainable development” in Economic Bulletin, vol. 33, no. 4, 2013, pp. 2545-2562.
[49] S. Wei, “How taxing is corruption on international investors?” in Review of Economics and Statistics, vol. 82, no. 1, 2000, pp. 1-11.
[50] World Bank, Literature survey on state capture, grand corruption and political corruption. Public Sector Governance, Pverty Reduction & Economic Management (PREM), 2010.
[51] World Commission, Our common future. New York: Oxford University Press, 1997.