Corruption in Developing Countries

49 Pages Posted: 21 Sep 2011 Last revised: 15 Jan 2023

See all articles by Benjamin A. Olken

Benjamin A. Olken

Massachusetts Institute of Technology (MIT) - Department of Economics; National Bureau of Economic Research (NBER); Harvard University - Society of Fellows

Rohini Pande

Yale University - Economic Growth Center

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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.

Suggested Citation

Olken, Benjamin A. and Pande, Rohini, Corruption in Developing Countries (September 2011). NBER Working Paper No. w17398, Available at SSRN: https://ssrn.com/abstract=1931169

Benjamin A. Olken (Contact Author)

Massachusetts Institute of Technology (MIT) - Department of Economics ( email )

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Harvard University - Society of Fellows

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Rohini Pande

Yale University - Economic Growth Center ( email )

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New Haven, CT 06520-8269
United States

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