Grease or Sand the Wheels? A State-Level Approach on Corruption in Brazil

Autor: José Weligton Félix Gomes, Ricardo Antonio de Castro Pereira, Francisco Germano Carvalho Lúcio
Rok vydání: 2020
Předmět:
Zdroj: Theoretical Economics Letters. 10:620-634
ISSN: 2162-2086
2162-2078
DOI: 10.4236/tel.2020.103040
Popis: This paper investigates the effects of corruption on income per capita over Brazilian states. Given the absence of proxies for corruption in this subnational level, it creates objective proxies for that. To achieve more accuracy on analyses, this paper also controls for spatial correlation. Although corruption had presented a negative and significant effect on aspatial models, it is indeed nonsignificant as long as it controls for spatial dependence. Hence, it seems corruption has no impact on GDP per capita at the state-level in Brazil. Therefore, neither the “grease the wheels” nor the “sand the wheels” hypothesis fits the Brazilian states.
Databáze: OpenAIRE