Huseyin Atakan Keskin University of Tampa
Faculty Sponsor(s): Andrew DeMil University of TampaThe consensus amongst many scholars on how inclusive institutions are conducive for development and economic growth is inevitable; however, the conundrum begins on the debate the real effect of corruption on economic growth.This study uses previous research to analyze the impact of corruption on economic growth in twenty countries in Latin America from 1995 to 2015. By using 11 different Ordinary Least Squares (OLS) regression models such as bivariate, multivariate, pooled regression, and fixed effects panel, the research attempts to explain the true effect of types of corruption on economic growth with respect to fluctuations in each country. The regression tests are based on the basic Solow growth Model components. The dependent variable is the percentage of annual GDP growth in every regression analysis while the independent variables are rate of population growth; gross capital formation (formerly gross fixed investment); percentage of labor force with primary education, percentage of labor force with secondary education; and four corruption variables. This research uses “Control of Corruption, Business Regulations, Protection of Property Rights, and Corruption Perceptions Index” as measurements of corruption. Further analyses agrees with Acemoglu’s research on how It may be optimal to allow some corruption and not enforce property rights fully and less developed economies then could decide to enforce lower levels of property right enforcement and more corruption to stimulate the economy.
When & Where
Jordan Hall 238