Skip to main content

Advertisement

Log in

Impact of corruption on GDP per capita through international migration: an empirical investigation

  • Published:
Quality & Quantity Aims and scope Submit manuscript

Abstract

An attempt has been made to examine the impact of corruption on GDP per capita through a migration channel for a sample of 94 developed and developing countries from 1996 to 2010 using cross section and panel data estimation techniques. Our results show that corruption reduces GDP per capita through a migration channel after controlling for other variables. Our analysis suggests that if emigration is increasing due to rampant corruption, this would not have any significant macroeconomic impact on GDP per capita. Therefore, governments of these economies must revisit their policies and control corruption.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

References

  • Ahmad, N.: Corrupt clubs and the convergence hypothesis. J. Econ. Policy Reform.11(1), 21–28 (2008)

    Article  Google Scholar 

  • Ahmad, N.: Corruption perception indices: a comparative analysis [with comments]. Pakistan Dev. Rev. 40(4), 813–830 (2001)

    Google Scholar 

  • Ahmad, N., Brookins, O.: The impact of corruption on efficiency in developing economies. Int. J. Econ. Perspect. 1(2), 64–73 (2007)

    Google Scholar 

  • Akai, N., Horiuchi, Y., Sakata, M: Short-run and long-run effects of corruption on economic growth: evidence from state-level cross-section data for the United States (2005)

  • Akerlof, G.A.: The market for “Lemons”: quality uncertainty and the market mechanism. Q. J. Econ. 84(3), 488–500 (1970)

    Article  Google Scholar 

  • Alam, M.S.: Some economic costs of corruption in LDCs. J. Dev. Stud. 27(1), 89–97 (1990)

    Article  Google Scholar 

  • Alam, M.S.: A theory of limits on corruption and some applications. Kyklos 48(3), 419–435 (1995)

    Article  Google Scholar 

  • Beine, M., Docquier, F., Rapoport, H.: Brain drain and economic growth: theory and evidence. J Dev. Econ. 64(1), 275–289 (2001)

    Article  Google Scholar 

  • De Haas, H.: The migration and development pendulum: a critical view on research and policy. Int. Migration 50(3), 8–25 (2012)

    Article  Google Scholar 

  • Di Maria, C., Stryszowski, P.: Migration, human capital accumulation and economic development. J. Dev. Econ. 90(2), 306–313 (2009)

    Article  Google Scholar 

  • Hall, R.E., Jones, C.I.: Why do some countries produce so much more output per worker than others? Q. J. Econ. 114(1), 83–116 (1999)

    Article  Google Scholar 

  • Hodge, A., Shankar, S., Rao, D.S.P., Duhs, A.: Exploring the links between corruption and growth. Rev. Dev. Econ. 15(3), 474–490 (2011)

    Article  Google Scholar 

  • Leff, N.H.: Economic development through bureaucratic corruption. Am. Behav. Sci. 8(3), 8–14 (1964)

    Article  Google Scholar 

  • Lui, F.T.: An equilibrium queuing model of bribery. J. Polit. Econ. 93(4), 760–781 (1985)

    Article  Google Scholar 

  • Mariani, F.: Migration as an antidote to rent-seeking? J. Dev. Econ. 84(2), 609–630 (2007)

    Article  Google Scholar 

  • Mauro, P.: Corruption and growth. Q. J. Econ. 110(3), 681–712 (1995)

    Article  Google Scholar 

  • Méon, P.-G., Sekkat, K.: Does corruption grease or sand the wheels of growth? Public Choice 122(1–2), 69–97 (2005)

    Article  Google Scholar 

  • Mo, P.H.: Corruption and economic growth. J. Comp. Econ. 29(1), 66–79 (2001)

    Article  Google Scholar 

  • Mountford, A.: Can a brain drain be good for growth in the source economy? J. Dev. Econ. 53(2), 287–303 (1997)

    Article  Google Scholar 

  • Murphy, K.M., Shleifer, A., Vishny, R.W.: The allocation of talent: implications for growth. Q. J. Econ. 106(2), 503–530 (1991)

    Article  Google Scholar 

  • Pellegrini, L., Gerlagh, R.: Corruption’s effect on growth and its transmission channels. Kyklos 57(3), 429–456 (2004)

    Article  Google Scholar 

  • Rock, M.T., Bonnett, H.: The comparative politics of corruption: accounting for the east asian paradox in empirical studies of corruption, growth and investment. World Dev. 32(6), 999–1017 (2004)

    Article  Google Scholar 

  • Rose-Ackerman, S. The political economy of corruption. In Elliot, K. A. (Ed.), Corruption and the Global Economy (pp. 31–60). Institute for International Economics, Peterson (1997)

  • Shleifer, A., Vishny, R.W.: Corruption. Q. J. Econ. 108(3), 599–617 (1993)

    Article  Google Scholar 

  • Transparency International (TI): http://www.transparency.org/ (2014). Accessed 25 August 2014

  • Vidal, J.P., 4: The effect of emigration on human capital formation. J. Popul. Econ. 11(4), 589–600 (1998)

    Article  Google Scholar 

Download references

Acknowledgments

We are thankful to Heman Das Lohano, Naeem uz Zafar and an anonymous referee for their helpful comments and suggestions; however, we are responsible for the views expressed in this paper and any remaining errors. Excellent editing services are provided by Nicole Rice and Clare Westcott.

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Naved Ahmad.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Ahmad, N., Arjumand, S. Impact of corruption on GDP per capita through international migration: an empirical investigation. Qual Quant 50, 1633–1643 (2016). https://doi.org/10.1007/s11135-015-0224-y

Download citation

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11135-015-0224-y

Keywords

Navigation