Corruption and Economic Growth: An Econometric Survey of the Evidence

Does corruption grease or sand the wheels of economic growth? This paper provides a systematic evaluation of the effect of corruption on growth, using metaanalysis techniques for 460 estimates from 41 studies. We find that publication bias, albeit acute, does not dissipate the genuine and negative effect of corruption on growth. Among the main factors explaining the variation in the estimated effects, we find that taking account of (a) trade openness and institutions and (b) authors with academic affiliations (as opposed to think tanks and international organizations) seems to help generate less negative effects of corruption on growth.