TITLE:
Long-Term Effects of Corruption Control and Economic Freedom on Economic Growth
AUTHORS:
Natanael Soares Leite, Francisco Germano Carvalho Lucio, Roberto Tatiwa Ferreira
KEYWORDS:
Economic Growth, Control of Corruption, Economic Freedom, Autoregressive Models
JOURNAL NAME:
Theoretical Economics Letters,
Vol.9 No.8,
December
13,
2019
ABSTRACT: Theoretical models and empirical evidence show that
corruption control
and economic openness have effects on economic growth. This paper aims to
estimate the long-term effects of the anti-corruption effort and economic
freedom on economic growth in a sample of 121 countries. We use autoregressive
distributed lag (ARDL) models and estimation techniques appropriate to the case
where there is a correlation between cross-section errors possibly generated by
spillover effects. Besides, estimates of ARDL models are consistent even with
endogenous regressors and integrated variables. The results indicate that economic growth of a country can be positively
and significantly affected by the long-term corruption control and economic freedom.