Theoretical models and empirical evidence show that corruption control and economic openness have effects on economic growth. This paper aims to estimate the long-term effects of the anti-corruption effort and economic freedom on economic growth in a sample of 121 countries. We use autoregressive distributed lag (ARDL) models and estimation techniques appropriate to the case where there is a correlation between cross-section errors possibly generated by spillover effects. Besides, estimates of ARDL models are consistent even with endogenous regressors and integrated variables. The results indicate that economic growth of a country can be positively and significantly affected by the long-term corruption control and economic freedom.
KeywordsEconomic GrowthControl of CorruptionEconomic FreedomAutoregressive Models
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