A Conceptual Analysis of Macro Corruption: Dimensions and Forward and Backward Linkages

Ahmed Sakr Ashour, Hoda Saad AboRemila

Abstract


To fill the gap in the macro analysis of corruption an attempt was made to formulate a conceptual framework that differentiates four types of macro corruption: state capture, political, bureaucratic and financial/corporate. The economic consequences or forward linkages are: growth, inclusiveness and sustainability of development. The macro institutional determinants constituting the backward linkages of each type are 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.


Full Text:

PDF

References


Acemoglu, D., & Verdier, T. (1998). Property rights, corruption and the allocation of talent: A general equilibrium approach. Economic Journal, 108, 1381-1403. https://doi.org/10.1111/1468-0297.00347

Aidt, S. (2003). Economic analysis of corruption: A survey. Economic Journal, 113, 632- 652. https://doi.org/10.1046/j.0013-0133.2003.00171.x

Aidt, S. (2009). Corruption, institutions and economic development. Working Papers in Economics 0918. https://doi.org/10.1093/oxrep/grp012

Aidt, S. (2010). Corruption and sustainable development. Cambridge. Working Papers in Economics 1061, Faculty of Economics, University of Cambridge.

Aidt, S., Dutta, J., & Sena, V. (2005). Growth, governance and corruption in the presence of threshold effects: Theory and evidence. Cambridge Working Papers in Economics. Cambridge: University of Cambridge.

Aidt, S., Dutta, J., & Sena, V. (2008). Governance regimes, corruption and growth: Theory and evidence. Journal of Comparative Economics, 36(2), 195-220. https://doi.org/10.1016/j.jce.2007.11.004

Ake, C. (1996). Democracy and development in Africa. Washington, D.C: Brookings Institution.

Andrig, C., & Moene, O. (1990). How corruption may corrupt. Journal of Economic Behavior and Organization, 13(1), 63-76. https://doi.org/10.1016/0167-2681(90)90053-G

Atkinson, G., & Hamilton, K. (2003). Saving, Growth and the resource curse hypothesis. World Development, 31, 1793-1807. https://doi.org/10.1016/j.worlddev.2003.05.001

Auty, M. (1993). Sustaining development in mineral economies. London: Routledge.

Bardhan, P. (1997). Corruption and development: A review of issues. Journal of Economic Literature, 45, 1320-1346.

Beck, P., & Maher, M. (1986). A Comparison of bribery and bidding in thin markets. Economics Letters, 20(1), 1-5. https://doi.org/10.1016/0165-1765(86)90068-6

Blackburn, K., Niloy, B., & Emranul H. (2008). Endogenous corruption in economic development. Unpublished Working Paper, Department of Economics, University of Wisconsin.

Blackburn, K., Niloy, B., & Emranul, H. (2006). The incidence and persistence of corruption in economic development. Journal of Economic Dynamics and Control, 30, 2447- 2467. https://doi.org/10.1016/j.jedc.2005.07.007

Broadman, H., & Recanatini (2001). Seeds of corruption: Do market institutions matter? MOCT-MOST, (11), 359-392. https://doi.org/10.1023/A:1015264312632

Conceicao, P., Shimeles, A., & Solignac-Lecomte, H. (2014). Are global value chains good news for Africa’s industrialization. Great Insights, 3(5). Retrieved from: https://ecdpm.org/great-insights/value-chains-industrialisation/global-value-chains-good-news-africas-industrialisation/

Drury, C., Krieckhaus, J., & Lusztig, M.(2006). Corruption, democracy, and economic growth. International Political Science Review, 27(2), 121-136. https://doi.org/10.1177/0192512106061423

Ellis, J., & Fender, J. (2006). Corruption and transparency in a growth model. International Tax and Public Finance, 13(2-3), 115-149. https://doi.org/10.1007/s10797-006-1664-z

Groenendijk, N. (1997). A principal-agent model of corruption. Crime, Law & Social Change, 27, 207-229. https://doi.org/10.1023/A:1008267601329

Gylfason, T. (2001). Natural resources, education and economic development. European Economic Review, 45, 847-859. https://doi.org/10.1016/S0014-2921(01)00127-1

Hodge, A., Shankar, S., Rao, D., & Duhs, A. (2011). Exploring the links between corruption and growth. Review of Development Economics, 15(3), 474-490. https://doi.org/10.1111/j.1467-9361.2011.00621.x

Hodler, R. (2006). The curse of natural resources in fractionalized countries. European Economic Review, 50, 1367-1386. https://doi.org/10.1016/j.euroecorev.2005.05.004

Humphreys, M., & Bates, R. (2005). Political institutions and economic policies: Lessons from Africa. British Journal of Political Science, 35, 403-428. https://doi.org/10.1017/S0007123405000232

Huntington, P. (1968). Political Order in Changing Societies. New Haven, Conn.: Yale University Press.

Ianchovichina, E., & Lundstrom, S. (2009). Inclusive growth analytics: Framework and Application. Policy Research working paper; no. WPS 4851. Washington, DC: World Bank.

Kaufmann, D. (1997). Corruption: The facts. Foreign Policy, 107, 114-131. https://doi.org/10.2307/1149337

Kaufmann, D., & Wei, S. (1999). Does "grease money" speed up the wheels of commerce? National Bureau of Economic Research, Inc., NBER Working Papers: 7093. https://doi.org/10.3386/w7093

Khan, M. (2006) Determinants of corruption in developing countries: The limits of conventional economic analysis, In S. Rose-Ackerman (ed.), International handbook on the economics of corruption. Northampton, MA: Edward Elgar.

Krusell, P., & Rios-Rull, J. (1996). Vested interests in a positive theory of stagnation and growth. Review of Economic Studies, 63, 301-329. https://doi.org/10.2307/2297854

Lane, R., & Tornell, A. (1996). Power, growth, and the voracity effect. Journal of Economic Growth, 1(2), 213-41. https://doi.org/10.1007/BF00138863

Leff, N. (1964). Economic development through bureaucratic corruption. American Behavioral Scientist, 8(3), 8-14. https://doi.org/10.1177/000276426400800303

Leith, C., & Lofchie, M. (1991). The Case of Ghana. Economic and Political Interactions in Economic Policy Reform (eds.) in R. Bates and A. Krueger. Oxford: Blackwell.

Lui, T. (1985). An equilibrium queuing model of bribery. Journal of Political Economy, 93(4), 760-781. https://doi.org/10.1086/261329

Mauro, P. (1995). Corruption and growth. Quarterly Journal of Economics, 110, 681-712.

Mauro, P. (1997). The effects of corruption on growth, investment, and government expenditure: A cross-country analysis. In K. Elliott (eds.), Corruption and the Global Economy (pp. 83- 107). Washington, D.C.: Institute for International Economics. https://doi.org/10.2307/2946696

Mauro, P. (1998). Corruption and composition of government expenditure. Journal of Public Economics, 69, 263-279. https://doi.org/10.1016/S0047-2727(98)00025-5

Mazzucato, M. (2018). The value of everything: Making and taking in the global economy. London: Allen Lane.

Mehlum, H., Karl, M., & Ragnar, T. (2006). Institutions and the resource curse. Economic Journal, 116(508) 1-20. https://doi.org/10.1007/978-3-540-79247-5_13

Mo, H. (2001). Corruption and economic growth. Journal of Comparative Economics, 29, 66-79. https://doi.org/10.1006/jcec.2000.1703

Murphy, M., Andrei S., & Robert V. (1993). Why is rent seeking so costly to growth? American Economic Review, Paper and Proceedings, 83, 409-414.

Murphy, M., Andrei, S., & Robert, V. (1991). The allocation of talent: Implications for growth. Quarterly Journal of Economics, 106, 503-530. https://doi.org/10.2307/2937945

Myrdal, G. (1968). Asian Drama: An Inquiry into the Poverty of Nations. New York: Twentieth Century Fund.

Papurakis, E., & Reyer, G. (2006). Resource windfalls, investment, and long-term income. Resource Policy, 31, 117-1128. https://doi.org/10.1016/j.resourpol.2006.09.002

Pellegrini, L., & Gerlagh, R. (2004). Corruption's effect on growth and its transmission channels. Kyklos, 57, 429-456. https://doi.org/10.1111/j.0023-5962.2004.00261.x

Pritchett, L., & Werker, E. (2012). Developing the guts of a GUT (Grand Unified Theory): Elite commitment and inclusive growth. ESID Working Paper Series 16/12. https://doi.org/10.2139/ssrn.2386617

Robinson, A., & Torvik, R., & Verdier, T. (2006). Political foundations of the resource curse. Journal of Development Economics, 79, 447-468. https://doi.org/10.1016/j.jdeveco.2006.01.008

Rose-Ackerman, S. (1999). Corruption and government, causes, consequences and reform. Cambridge UK: Cambridge University Press. https://doi.org/10.1017/CBO9781139175098

Seyf, A. (2001). Corruption and development: A study of conflict. Development in Practice, 11(5), 597-605. https://doi.org/10.1080/09614520120085340

Tanzi, V. (1998). Corruption around the world: Causes, consequences, scope and cures. IMF Staff Papers, 45(4), 559-594. https://doi.org/10.2307/3867585

Ugur, M., & Dasgupta, N. (2011). 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.

Venard, B. (2013). Institutions, corruption and sustainable development. Economic Bulletin, 33(4), 2545-2562.

WCED (World Commission on Environment and Development) (1987). Our Common Future: Report of the World Commission on the Environment and Development [Bruntlandt Report]. General Assembly, United Nations, Forty-second Session, Supplement No. 25, A/42/25.

Wei, S. (2000). How taxing is corruption on international investors? Review of Economics and Statistics, 82(1), 1-11. https://doi.org/10.1162/003465300558533

World Bank (2010). Literature survey on state capture, grand corruption and political corruption. Public Sector Governance, Poverty Reduction & Economic Management (PREM).




DOI: https://doi.org/10.5296/jpag.v9i2.14983

Copyright (c) 2019 Ahmed Sakr Ashour, Hoda Saad AboRemila

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

Journal of Public Administration and Governance  ISSN 2161-7104

Email: jpag@macrothink.org

Copyright © Macrothink Institute

To make sure that you can receive messages from us, please add the 'macrothink.org' domain to your e-mail 'safe list'. If you do not receive e-mail in your 'inbox', check your 'bulk mail' or 'junk mail' folders. 

------------------------------------------------------------------------------------------------------------------------------------------------------