Author: Petrarca, Ilaria
Title: The Historical Roots of Corruption and Economic Development in Italy
Summary: We claim that a sequential mechanism linking history to development exists: first, history defines the quality of social capital; then, social capital determines the level of corruption; finally, corruption affects economic performance. We test this hypothesis on a dataset of Italian provinces, and address the possible endogeneity of corruption by applying an IV model. We use three sets of historical instruments for corruption: 1) foreign dominations in 16th-17th century, 2) autocracy/autonomous rule in the 14th century, and 3) an index of social capital between in the 19th-20th century. The results indicate a significant impact of historically-driven corruption on development.
Details: Munich: Center for Economic Studies (CES), the Ifo Institute and the CESifo GmbH, 2013. 20p.
Source: Internet Resource: CESifo Working Paper No. 4212; Accessed May 1, 2013 at www.cesifo.org/wp
Year: 2013
Country: Italy
URL:
Shelf Number: 128581
Keywords:
Corruption (Italy)Economic DevelopmentEconomics of CrimeSocial Capital |
