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An Empirical Approach

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  • Johann Graf Lambsdorff
Abstract
There is empirical evidence that investors’ confidence is not only adversely affected by corruption but also by the lack of predictability and confidence that accompanies corrupt deals. However, the positive aspect of this lack of confidence is that it acts as a deterrent to corruption. Empirical data provided here on a cross–section of countries proves that confidence in corrupt deals enhances the further spread of corruption. This suggests that the adverse effects of corruption cannot be avoided by divesting it of its unpredictability.

Suggested Citation

  • Johann Graf Lambsdorff, 2002. "An Empirical Approach," American Journal of Economics and Sociology, Wiley Blackwell, vol. 61(4), pages 829-853, October.
    • Handle: RePEc:bla:ajecsc:v:61:y:2002:i:4:p:829-853
    DOI: 10.1111/1536-7150.00194
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    Citations

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    Cited by:

    1. Keith Blackburn & Niloy Bose & M. Emranul Haque, 2011. "Public Expenditures, Bureaucratic Corruption And Economic Development," Manchester School, University of Manchester, vol. 79(3), pages 405-428, June.
    2. Eric C. C. Chang, 2020. "Corruption predictability and corruption voting in Asian democracies," Public Choice, Springer, vol. 184(3), pages 307-326, September.
    3. Hasan A. Faruq, 2017. "Corruption, product complexity and African exporters," Applied Economics, Taylor & Francis Journals, vol. 49(6), pages 534-546, February.
    4. M. Emranul Haque & Richard Kneller, 2015. "Why does Public Investment Fail to Raise Economic Growth? The Role of Corruption," Manchester School, University of Manchester, vol. 83(6), pages 623-651, December.
    5. M. Emranul Haque & Richard Kneller, 2012. "Why Public Investment fails to raise economic growth in some countries?: The role of corruption," Centre for Growth and Business Cycle Research Discussion Paper Series 162, Economics, The University of Manchester.
    6. Nirosha Wellalage & Sujani Thrikawala, 2021. "Does bribery sand or grease the wheels of firm level innovation: evidence from Latin American countries," Journal of Evolutionary Economics, Springer, vol. 31(3), pages 891-929, July.
    7. M. Emranul Haque & Richard Kneller, 2008. "Public Investment and Growth: The Role of Corruption," Centre for Growth and Business Cycle Research Discussion Paper Series 98, Economics, The University of Manchester.
    8. Dean A. Shepherd & Vinit Parida & Joakim Wincent, 2021. "Bribery from a micro, demand-side perspective," Small Business Economics, Springer, vol. 57(4), pages 1661-1680, December.
    9. Andrea F.M. Martinangeli & Marina Povitkina & Sverker C. Jagers & Bo Rothstein, 2020. "Institutional Quality Causes Social Trust: Experimental Evidence on Trusting Under the Shadow of Doubt," Working Papers tax-mpg-rps-2020-04, Max Planck Institute for Tax Law and Public Finance.

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