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Corruption, Natural Capital and Economic Development: A Dynamic GMM Analysis

  • Southern Connecticut State University

Research output: Contribution to journalArticlepeer-review

1 Scopus citations

Abstract

Using a dynamic panel dataset of 150 countries for the period of 2006-2018 and a two-step system GMM estimation model, this paper shows that natural resources have a positive effect on economic development while holding corruption constant. Our findings support the notion that natural resources have a positive effect on the economy of a nation. When a country has less corruption, it improves the appropriation of economic gains from natural resources which serves as natural capital that would drive further capital accumulation and further development. We also find that physical capital, human capital, and freedom from corruption show strong positive effects on economic development, controlling for other economic and institutional variables.
Original languageEnglish
Pages (from-to)95-114
Number of pages20
JournalReview of Economic Analysis
Volume17
Issue number1
DOIs
StatePublished - Mar 16 2025

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

  1. SDG 8 - Decent Work and Economic Growth
    SDG 8 Decent Work and Economic Growth

Keywords

  • Corruption
  • Dynamic Panel Study
  • Economic Development
  • Human Capital
  • Natural Resources
  • Physical Capital

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