Corruption and Growth
Abstract
This paper analyzes a newly assembled data set consisting of subjective indices of corruption, the amount of red tape, the efficiency of the judicial system, and various categories of political stability for a cross section of countries. Corruption is found to lower investment, thereby lowering economic growth. The results are robust to controlling for endogeneity by using an index of ethnolinguistic fractionalization as an instrument.
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Diverse groups may face coordination challenges that hinder financial development, particularly where institutions are weak.
“Higher ethnic diversity is associated with lower PRIVATE in developing countries, suggesting that diverse groups may face coordination challenges that hinder financial development, particularly where institutions are weak (Mauro 1995).”
From Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries? (2025) · cites this paper as Mauro 1995
Higher ethnic diversity is associated with lower PRIVATE in developing countries.
“Higher ethnic diversity is associated with lower PRIVATE in developing countries, suggesting that diverse groups may face coordination challenges that hinder financial development, particularly where institutions are weak (Mauro 1995).”
From Diversity Matters in the World of Finance: Does Ethnic and Religious Diversity Hinder Financial Development in Developing Countries? (2025) · cites this paper as Mauro 1995
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- Authors
- Mauro, P.
- Affiliations
- International Monetary Fund (US)
- Corresponding author
- Mauro, P.
- Venue
- The Quarterly Journal of Economics
- Publisher
- Oxford University Press (OUP)
- Published
- 1995-08-01
- Volume
- 110
- Issue
- 3
- Pages
- 681-712
- ISSN
- 0033-5533 (ISSN-L)
- 1531-4650
- OpenAlex
- W1991128340
- Cited by
- 8,820
- References
- 0
- Citations by year
- 2026: 249 · 2025: 322 · 2024: 328 · 2023: 340 · 2022: 318 · 2021: 424 · 2020: 419 · 2019: 364 · 2018: 366 · 2017: 344 · 2016: 383 · 2015: 407 · 2014: 412 · 2013: 408 · 2012: 392
- FWCI
- 189.78
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- The Quarterly Journal of Economics (publishedVersion)
- RePEc: Research Papers in Economics (submittedVersion)
- HighWire Press Open Archive (submittedVersion)
- Topics
- Social Sciences › Sociology and Political Science › Corruption and Economic Development
- Social Sciences › Demography › Culture, Economy, and Development Studies
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Natural Resources and Economic Development
- Keywords
- corruption, economic growth, red tape, judicial efficiency, political stability, investment, endogeneity, cross-country data
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