Corruption has a significant influence on economic growth in the short run, but not in the long run

Corruption InvestmentThis study of forty two developing countries uses Panel Dynamic Ordinary Least Squares – PDOLS – to examine the relationship between foreign direct investment, corruption and economic growth.

The results suggest that corruption has a significant influence on per capita GDP in the short run but is not significant in the long run. It was also found that lower levels of corruption enhance the impact of foreign direct investment on economic growth. This has important implications for policymakers.

Learn more about this paper: click here

Author(s):

Marie Freckleton, (Department of Economics, University of the West Indies, Kingston, Jamaica); Allan Wright, (Central Bank of Barbados, Bridgetown, Barbados); Roland Craigwell, (Department of Economics, University of the West Indies, Cave Hill, Barbados)

At Balcostics our mission is to empower decision makers with the required data and information to make better decisions. Learn more about our full list of research outsourcing services for individuals and companies: Click here

Balcostics ad3-01

Advertisements

Be sure to leave a comment

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s