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Student
Title
Supervisor
Faculty
Educational Programme
Final Grade
Year of Graduation
Daniil Chernikov
Influence of Corruption on Economic Growth
7
2016
In this paper, I investigate the influence of corruption on economic growth and development. Corruption level is counted by new instrument – percentage of cashless transactions in the economy. It is estimated by the proxy, using cash in the economy and overall monetary base. The usage of instrumental variable solve the problem of endogeneity and measurement errors. Panel data consists of 86 thousands observations for 214 countries over 36 years (1960-2015) and 23 variables. Empirical analysis shows, that corruption does not significantly influence economic growth. However, the strong evidence can be found in favor of its influence of economic development. Results are robust both for developed and developing countries.

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