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Corruption, Democracy and Growth: Evidence from Emerging Market Economies

Amrita Chatterjee (Madras School of Economics)

Environmental Sustainability, Growth Trajectory and Gender: Contemporary Issues of Developing Economies

ISBN: 978-1-80262-154-9, eISBN: 978-1-80262-153-2

Publication date: 9 June 2022

Abstract

There is a long-lasting debate on the relationship between democracy and economic growth, though it remained inconclusive. On the other hand, corruption is one of the greatest challenges of the contemporary world that lessens the efficiency of a good government, distorts public policy, leads to the misallocation of resources, harms the private sector and particularly hurts the poor. Moreover, the corruption–growth relationship has been shown to be contingent upon the political regime. This chapter has chosen a set of emerging market economies (EMEs), which consists of democratic as well as authoritarian countries, to throw light on democracy–growth relationship through the channel of corruption using a system generalized method of moments estimation of a panel of 27 countries for a period of 2006–2018. Results show that democracy is growth-enhancing but corruption dampens its positive impact to some extent. However, for authoritarian countries corruption can enhance growth.

Keywords

Citation

Chatterjee, A. (2022), "Corruption, Democracy and Growth: Evidence from Emerging Market Economies", Chakraborty, C. and Pal, D. (Ed.) Environmental Sustainability, Growth Trajectory and Gender: Contemporary Issues of Developing Economies, Emerald Publishing Limited, Leeds, pp. 137-149. https://doi.org/10.1108/978-1-80262-153-220221011

Publisher

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Emerald Publishing Limited

Copyright © 2022 Amrita Chatterjee