The Relationship between Corruption and Economic Growth: The Case of Newly Industrialized Countries
Studies on corruption have been increasing in the literature recently. The effects of corruption, especially on macroeconomic variables, are a matter of curiosity for researchers. The aim of this study is to examine the relationship between corruption and economic growth. In this sense, Newly Industrialized Countries (NIC) are investigated in the study. The study covers the period 2001-2014 and to determine the long-term relationship, Pedroni cointegration test, panel FMOLS and panel DOLS coefficient estimators are utilised. According to the results of Pedroni cointegration test, there is a long-term relationship between corruption and economic growth. In addition, both panel FMOLS and DOLS results indicate that rise in corruption index contributes to higher economic growth in related countries.