DOES FINANCIAL DEVELOPMENT REDUCE CORRUPTION?

Preprint OPEN
John Thornton;
(2009)
  • Subject: Financial development, Corruption , Instrumental Variables
    • jel: jel:G20 | jel:O5

I estimate the impact of bank cred it to the private sector on corruption using indicators of a country's legal origin as instrumental variables to assess causality. I find that bank credit reduces corruption, with the result robust to instrumenting for bank credit and ... View more
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