Corruption in Developing Countries
49 Pages Posted: 21 Sep 2011 Last revised: 15 Jan 2023
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Corruption in Developing Countries
Corruption in Developing Countries
Date Written: September 2011
Abstract
Recent years have seen a remarkable expansion in economists' ability to measure corruption. This, in turn, has led to a new generation of well-identified, microeconomic studies. We review the evidence on corruption in developing countries in light of these recent advances, focusing on three questions: how much corruption is there, what are the efficiency consequences of corruption, and what determines the level of corruption. We find robust evidence that corruption responds to standard economic incentive theory, but also that effects of anti-corruption policies often attenuate as officials find alternate strategies to pursue rents.
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