October 2, 2024EconomiesOpen Access

Effects of Corruption and Informality on Economic Growth through Productivity

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Authors

PBPedro BermúdezErnst & Young (Israel)LVLuis Verástegui JNJosé Luis NolazcoUniversidad de Lima

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Implication

Econometric analysis reveals that corruption and informality reduce growth and productivity across Latin America and the OECD, suggesting human capital investment can mitigate these harms.

Key Points

Corruption and informality directly reduce economic growth and productivity across Latin American and OECD nations, leading to widespread economic deceleration.
A 3SLS-GMM estimation addresses endogeneity across equation systems, while simulation analysis quantifies the compounding damages of rising corruption and informality.
Investments in human capital generate positive economic growth and substantially reduce the negative productivity impacts caused by corruption and informality.

Cite This Study

Bermúdez et al. (2024) studied this question.

synapsesocial.com/papers/68e55ff7e2b3180350efc8ea https://doi.org/10.3390/economies12100268

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Implication

Econometric analysis reveals that corruption and informality reduce growth and productivity across Latin America and the OECD, suggesting human capital investment can mitigate these harms.

Effects of Corruption and Informality on Economic Growth through Productivity

Discussion

Member takes

Implication

Key Points

Cite This Study

Effects of Corruption and Informality on Economic Growth through Productivity

Discussion

Member takes

Implication

Key Points

Cite This Study

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Also Consider