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Corruption and economic growth: an absolute obstacle or some efficient grease?

Abstract The relationship between bureaucratic corruption and economic growth has been a much debated topic in the studies of economics and political science in the past decades. However, no theoretical consensus has been reached in this field. Corresponding to the divergence in theoretical perspectives, empirical evidence is mixed as well. As a fundamental step to examine the correlation between corruption and economic growth, this review provides a systematic review of the existing theoretical and empirical research on corruption’s growth effects. Meanwhile, the definition and statistical measurement of corruption is also discussed. This review makes new contributions to the extant corruption literature since it not only incorporates the latest scholarship on the topic but highlights corruption’s differential growth effects in different organisational, institutional and geographical contexts.