Handbook on the Geographies of Corruption
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Handbook on the Geographies of Corruption

Edited by Barney Warf

The Handbook on the Geographies of Corruption offers a comprehensive overview of how corruption varies across the globe. It explores the immense range of corruption among countries, and how this reflects levels of wealth, the centralization of power, colonial legacies, and different national cultures. Barney Warf presents an original and interdisciplinary collection of chapters from established researchers and leading academics that examine corruption from a spatial perspective.
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Chapter 6: The consequences of corruption

Dominik H. Enste and Christina Heldman

Abstract

In this chapter, the authors study the consequence of corruption, which are numerous, nefarious, and debilitating. They trace corruption’s effects on private investment, foreign direct investment and capital inflows, foreign trade, government expenditures and services, gross domestic product, inequality, and the shadow or underground economy. These effects are not straightforward and the evidence is not always consistent, and poorly functioning economies may generate corruption as much as corruption retards economic growth. However, there is convincing proof that corruption rewards a few officials but makes everyone else poorer.

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