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The Effect of Corruption on Economic Growth in Europe

Kriechbaum, Katharina LU (2023) EKHS42 20231
Department of Economic History
Abstract
This thesis aims at investigating the effect of corruption on economic growth in Europe, as well as Western and Eastern Europe separately. In particular, I ask the following two research questions: Does corruption in Europe have a negative effect on economic growth at an aggregate level? Does this effect change when dividing my data set into two sub-samples, each consisting of countries with similar regional, institutional and economic characteristics? By conducting a descriptive analysis, as well as performing OLS, Fixed Effects, 2SLS and GMM estimations, I find a robust significant negative effect of corruption on economic growth in whole and Eastern Europe and inconclusive results for Western Europe. Hence, my findings suggest that... (More)
This thesis aims at investigating the effect of corruption on economic growth in Europe, as well as Western and Eastern Europe separately. In particular, I ask the following two research questions: Does corruption in Europe have a negative effect on economic growth at an aggregate level? Does this effect change when dividing my data set into two sub-samples, each consisting of countries with similar regional, institutional and economic characteristics? By conducting a descriptive analysis, as well as performing OLS, Fixed Effects, 2SLS and GMM estimations, I find a robust significant negative effect of corruption on economic growth in whole and Eastern Europe and inconclusive results for Western Europe. Hence, my findings suggest that corruption has an overall negative impact on economic growth in Europe while highlighting the importance of taking into account the influence of country-specific determinants on the relationship between corruption and economic indicators. (Less)
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author
Kriechbaum, Katharina LU
supervisor
organization
course
EKHS42 20231
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Corruption, Economic Growth, Economic Development, Institutions, Europe
language
English
id
9129923
date added to LUP
2023-08-30 08:08:10
date last changed
2023-08-30 08:08:10
@misc{9129923,
  abstract     = {{This thesis aims at investigating the effect of corruption on economic growth in Europe, as well as Western and Eastern Europe separately. In particular, I ask the following two research questions: Does corruption in Europe have a negative effect on economic growth at an aggregate level? Does this effect change when dividing my data set into two sub-samples, each consisting of countries with similar regional, institutional and economic characteristics? By conducting a descriptive analysis, as well as performing OLS, Fixed Effects, 2SLS and GMM estimations, I find a robust significant negative effect of corruption on economic growth in whole and Eastern Europe and inconclusive results for Western Europe. Hence, my findings suggest that corruption has an overall negative impact on economic growth in Europe while highlighting the importance of taking into account the influence of country-specific determinants on the relationship between corruption and economic indicators.}},
  author       = {{Kriechbaum, Katharina}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{The Effect of Corruption on Economic Growth in Europe}},
  year         = {{2023}},
}