Corruption and Growth

The chart below is from a recent working paper out of the University of Chicago (mentioned in the Becker-Posner blog). The author shows that indiosyncratic corruption (basically the part of corruption index/level that is not correlated with governance indicator) has a positive impact on growth specially in countries with low quality of regulations. In a sense, corruption that goes around inefficient government regulation can be growth enhancing. Very interesting result.

Source: "Bad Corruption, Good Corruption and Growth" a working paper by Maxim Mironov