Corruption and Growth Under Weak Identification

  title={Corruption and Growth Under Weak Identification},
  author={Philip John Shaw and Marina-Selini Katsaiti and Marius Jurgilas},
  journal={Economic Growth eJournal},
The goal of this paper is to revisit the influential work of Mauro [1995] focusing on the strength of his results under weak identification. He finds a negative impact of corruption on investment and economic growth that appears to be robust to endogeneity when using two-stage least squares (2SLS). Since the inception of Mauro [1995], much literature has focused on 2SLS methods revealing the dangers of estimation and thus "traditional" types of inference under weak identification. We reproduce… Expand
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