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The relationship between corruption and economic growth

Assess the empirical evidence on the relationship between corruption and economic growth. Could you illustrate with a case study of an Asian economy?

How to do I start and what are the points that I can use for the body?

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An excellent paper on this topic was recently published by MIT researchers (Bai, Jayachandran, Malesky, and Olken, 2013). It can be found with an Internet search and is located at http://economics.mit.edu/files/8777. They develop a model that relates economic growth and mobility to corruption and use data from Vietnam to test their ideas.

Generally, we would expect that economic growth would be hampered by corruption, and this paper looks at the issue in the opposite manner: whether economic growth leads to less corruption. They find that this is indeed the case in Vietnam. As companies grow larger, they are able to benefit from moving away from areas with high levels of corruption. This creates competition ...

Solution Summary

Examination of the evidence tying corruption to poor economic growth. Illustration of this from an Asian economy.

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