TY - JOUR
T1 - Contagious corruption, informal employment, and income
T2 - evidence from Brazilian municipalities
AU - Bologna, Jamie
N1 - Publisher Copyright:
© 2016, Springer-Verlag Berlin Heidelberg.
PY - 2017/1/1
Y1 - 2017/1/1
N2 - Using data on 434 Brazilian municipalities, this paper explores the influence both corruption and the size of the informal sector have on economic outcomes, while allowing for the possibility of spatial dependence. Overall, this paper finds that the size of the informal sector has a statistically significant and negative association with economic outcomes that is much larger in magnitude than what is predicted by least squares estimates due to its exclusion of spillover effects, while corruption has no significant relationship. Specifically, a one standard deviation increase in the size of the informal sector is associated with a 26 % cumulative decrease in GDP per capita, compared to the maximum of a 17 % decline predicted by least squares.
AB - Using data on 434 Brazilian municipalities, this paper explores the influence both corruption and the size of the informal sector have on economic outcomes, while allowing for the possibility of spatial dependence. Overall, this paper finds that the size of the informal sector has a statistically significant and negative association with economic outcomes that is much larger in magnitude than what is predicted by least squares estimates due to its exclusion of spillover effects, while corruption has no significant relationship. Specifically, a one standard deviation increase in the size of the informal sector is associated with a 26 % cumulative decrease in GDP per capita, compared to the maximum of a 17 % decline predicted by least squares.
KW - D73
KW - O17
KW - O43
UR - http://www.scopus.com/inward/record.url?scp=84988432462&partnerID=8YFLogxK
U2 - 10.1007/s00168-016-0786-1
DO - 10.1007/s00168-016-0786-1
M3 - Article
AN - SCOPUS:84988432462
VL - 58
SP - 67
EP - 118
JO - Annals of Regional Science
JF - Annals of Regional Science
SN - 0570-1864
IS - 1
ER -