Macro-economic outcomes of corruption: A longitudinal empirical study

Abstract

What can corruption do to a nation's wealth? Using longitudinal data of 51 nations covering the period 1996 to 2002, the present study found significant correlations between national corruption and numerous important macro-economic performance indicators, including worker compensation levels, foreign direct investment inflows, gross domestic product per capita at purchasing power parity, gross domestic product per capita, labour productivity at purchasing power parity, overall productivity growth, overall productivity, and real gross domestic product growth. The results showed that corruption at the national level had far more specific macro-economic implications than previously thought. Implications for research and practice were discussed.