"Corrupt clubs and the convergence hypothesis" by Naved Ahmad
 

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

Pakistan Development Review

ISSN

0030-9729

Disciplines

Geography | Social and Behavioral Sciences

Abstract

Convergence is a tendency of lagging countries to grow faster than leading countries. Empirical work in rss-section framework demonstrates little or no support for absolute convergence in per capita GDP. The literature identifies several factors that determine the speed of convergence across heterogeneous group of countries. 1 argue in this paper that "divergence in corruption" (C-Divergence) 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. Following the same methodology used in the convergence literature, I estimate using Tl corruption perceptions index C-o and C-γ coefficients for both corrupt and less corrupt economies to explore the C-divergence in corruption rankings. The study concludes that corrupt countries are indeed C-converging, forming a "corrupt club", and this helps explain why backward nations remain backward.

Indexing Information

HJRS - Y Category, Scopus

Publication Status

Published

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