Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/4248
Authors: 
Gundlach, Erich
Paldam, Martin
Year of Publication: 
2008
Series/Report no.: 
Kiel Working Paper 1411
Abstract: 
Measures of corruption and income are highly correlated across countries. We use prehistoric measures of biogeography as instruments for modern income levels. We find that our instrumented incomes explain the cross-country pattern of corruption just as well as do actual incomes. This result demonstrates that the long-run causality is entirely from income to corruption. Hence, there is a Corruption Transition: As countries get rich, corruption vanishes.
Subjects: 
Corruption
Biogeography
Long-run development
JEL: 
B25
O1
Document Type: 
Working Paper

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