Corruption: what are the effects on government effectiveness? Empirical evidence considering developed and developing countries

This study analyses the impact of corruption on government effectiveness for a sample of 130 countries. The findings suggest that less-corrupt countries have better quality of public service, better quality in the formulation and adoption of policies and greater credibility and government's commitment to such policies. The findings also suggest that the effect of corruption on government effectiveness is higher in developed countries. Moreover, the estimates also reveal that countries with the most indebted governments and with higher inflation rates have less-efficient governments, and an increase in rule of law represents a good strategy to improve government effectiveness. In turn, regarding developing countries, the findings show that countries with more democratic regimes have a higher degree of government effectiveness.