An Empirical Study. Corruption And Government Efficiency, Investment And Economic Growth

This paper empirically studies that how corruption and government effectiveness affect the investment and growth of the GDP.This paper starts from the western economic theory's analysis about the definition and causations of corruption and how the corruption affects economy.According to these classical papers,there are some different opinions about the affection that corruption and government effectiveness give to the economic development.Some papers argued theoretically that corruption could promote the development of economy,and some others have the opposite results.In the second part,I describe the situations of corruption in China and other countries in the world.We could get the phenomenon that the countries with developed economy sometimes have high level of government effectiveness and probity while those underdeveloped countries always have high level of corruption and low government effectiveness.In the third pan of this paper,I develop econometrics' models according to some related theories and papers.I choose the related data of 92 countries and districts from 2003-2006 to analyze the relationships between corruption and government effectiveness.I find that the affection of corruption is negative while the affection of government effectiveness is positive.But the affection of political stability is not notable.So I get a conclusion in this paper that corruptions obviously baffle the development of many economies.We should resolve it effectively to get a great development. Although in this paper government effectiveness does not have a obvious affection on the growth rate of GDP,I still believe that improve government effectiveness is a great way to promote our development.Because of the acquirability of some data, there is some improvement we could do.