Corrupt clubs and the convergence hypothesis

Author Affiliation

Naved Ahmad is Associate Professor of Economics at Institute of Business Administration (IBA), Karachi

Faculty / School

Faculty of Business Administration (FBA)

Department

Department of Economics

Was this content written or created while at IBA?

Yes

Document Type

Article

Source Publication

Journal of Economic Policy Reform

ISSN

1748-7889

Disciplines

Accounting | Business | Econometrics | Economics | Finance

Abstract

Empirical work in a cross-section framework demonstrates little or no support for absolute convergence in per capita GDP. I argue in this paper that "divergence in corruption", defined as the tendency of corrupt countries to become more corrupt faster than less corrupt nations, is a neglected factor that also determines the speed of convergence. Using Transparency International (TI) corruption perceptions index, I estimate C-σ and C-γ coefficients for corrupt and less corrupt economies to explore the C-divergence in corruption rankings. The study concludes that corrupt countries are C-converging, forming a "corrupt club".

Indexing Information

HJRS - W Category, Scopus, Web of Science - Social Sciences Citation Index (SSCI)

Journal Quality Ranking

Impact Factor: 1.396

Publication Status

Published

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