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Economic growth, law, and corruption: evidence from India

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posted on 2023-06-08, 14:38 authored by Sambit BhattacharyyaSambit Bhattacharyya, Jha Raghbendra
Is corruption influenced by economic growth? Are legal institutions such as the ‘Right to Information Act (RTI) 2005’ in India effective in curbing corruption? Using a panel dataset covering 20 Indian states for the years 2005 and 2008 we estimate the effects of growth and law on corruption. Accounting for endogeneity, omitted fixed factors, and other nationwide changes we find that economic growth reduces overall corruption as well as corruption in banking, land administration, education, electricity, and hospitals. Growth reduces bribes but has little impact on corruption perception. In contrast the RTI Act reduces both corruption experience and corruption perception

History

Publication status

  • Published

File Version

  • Published version

Journal

Comparative Economic Studies

ISSN

0888-7233

Publisher

Palgrave Macmillan

Volume

55

Page range

287-313

Department affiliated with

  • Economics Publications

Full text available

  • Yes

Peer reviewed?

  • Yes

Legacy Posted Date

2013-03-21

First Open Access (FOA) Date

2014-12-10

First Compliant Deposit (FCD) Date

2013-03-21

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