Corruption and growth in developing countries

Abstract

Corruption is morally condemnable but what about its economical effect on the efficiency of on economy? Different transmission channels positively and negatively correlated with growth exist. The aim of this work is to catch the overall reality behind this impressively high number of transmission channels. Another task is to show the concrete consequences of corruption on a little economy like Haïti and what could be the consequences of the weaknesses induced by corruption. A presentation of the theoretical background is described together with the particularities of corruption in developing countries. A case study on Haïti, its infrastructure and the impact of corruption after the earthquake of 2010 will illustrate the theory. Last but not least, we present a model, where we analyze corruption as a determinant of growth in developing countries using data of 2011.