Authors: Sevak Tsaturyan, Phillip J. Bryson
Addresses: Marriott School, Brigham Young University, Provo, Utah 84602, USA. ' Marriott School, Brigham Young University, Provo, Utah 84602, USA
Abstract: The relationship between corruption and economic growth is investigated with 39 countries over an 11 year period. Since corruption data are insufficient for econometric analysis, a case study is undertaken for Armenia. Corruption hinders economic performance (strong negative correlation between corruption and real per capita GDP), but no evidence is found that extensive corruption limits international trade, since imports of goods and services increase as corruption does. Since 2000, Armenia has experienced worsening corruption but FDI has continued to increase and economic growth has been strong. Other performance indicators demonstrate a healthy macro economy not apparently troubled with corruption.
Keywords: corruption; economic growth; economic development; GDP growth; Armenia; transition economies.
International Journal of Economic Policy in Emerging Economies, 2009 Vol.2 No.4, pp.356 - 371
Published online: 13 Jan 2010 *Full-text access for editors Access for subscribers Purchase this article Comment on this article