Corruption And Economic Growth

Since thirty years of reforming and opening up,China’s economic growth has made great progress:GDP ranked from fifteenth in the world up to second in the world in 2013.And GDP per capita reached moderate national industrialization level.However,with the economic development the level of corruption is still high.Since the eighteenth people’s Congress,there are 62 officials sacked in China.The phenomenon of high corruption and high economic growth deviates from western economic theory,and there are few countries having such a development path in the world.This article is writing in such a background.We will use the number of the duty crime case divided by the total population in the 31 provinces of China as the proxy variable of the degree of corruption in the paper.Through simultaneous equation model,we will empirically analyze two aspects:relationship between corruption and economic growth,the factors affecting the corruption.Different from previous research,we use the GDP per capita growth rate and total factor productivity to measure economic growth in the paper.Through the empirical analysis,we obtained the following conclusions:(1)In the return of the whole area,between corruption and total economic growth has positive effect,every 1 unit increasing in corruption,leading to economic growth 0.151 units;however,between corruption and efficiency of economic growth has in the negative to the role,corruption increases for each 1 unit and efficiency of economic growth will reduce 0.322 units.(2)In eastern region,corruption increases for each 1 unit will bring economic growth decline of total 0.0545 units,while corruption for negative effect of the efficiency of economic growth is more significant;in the west,corruption increases for each 1 unit will bring economic growth increasing the total 0.464 units,and corruption on economic growth efficiency of the negative effect to smaller than the East.(3)The effect of market with the regional differences:in the eastern region,market can promote economic growth increasing in both quantity and efficiency of;and in the central and western regions,the market did not have this effect.But their same point is that the market can effectively reduce corruption,and the eastern part of the market for corruption is more obvious suppression of the role.(4)In the influence factors of many corruption,the size of government,market,per capita GDP,import and export accounted for than four variables for corruption has inhibitory effects,and human capital of corruption has little positive effect.