Corruption and Growth in the Philippines
Louis Johnston, Economics
In order to explain the gap between the rich and poor countries, this paper examines the effect corruption levels have upon the investment rate and the Gross Domestic Product per capita growth rate for a cross-country data set and, specifically, for the Philippines. The effects of ethnolinguistic fractionalization, colonization, and regional spill-over are also examined. the results show that there is a negative significant relationship between corruption and ethnolinguistic fractionalization, and the investment rate. There is also a negative, but insignificant relationship between corruption and ethnolinguistic fractionalization, and the Gross Domestic Product growth rate. When these models are applied to the Philippines they accurately predict the investment rate and approximate the Gross Domestic Product growth rate.
Hartje, Stephanie, "Corruption and Growth in the Philippines" (2006). Honors Theses. 286.