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Bureaucratic corruption and income : evidence from the land sector in Bangladesh

journal contribution
posted on 2016-01-01, 00:00 authored by A Islam, Wang Sheng Lee
We examine, for the first time, the effects of corruption on income using household survey data from a developing country. Estimating the effects of corruption on income is challenging because of the simultaneous relationship between the two variables. We use a two-step instrumental variable approach to identify the effects of corruption on income. We find that after adjusting for simultaneity bias the act of bribery reduces income and that higher bribes have a negative effect on income. Taken together, our results provide a possible explanation why a vicious cycle between corruption and income inequality does not exist in the land sector in Bangladesh.

History

Journal

Journal of development studies

Volume

52

Issue

10

Pagination

1499 - 1516

Publisher

Routledge

Location

Abingdon, Eng.

ISSN

0022-0388

eISSN

1743-9140

Language

eng

Publication classification

C Journal article; C1 Refereed article in a scholarly journal

Copyright notice

2016, Informa UK

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