Corruption and Total Factor Productivity in the Long-Run: Evidence from Post-WW2 Turkey

Teoman Ö., Dincer O., Çavuşoğlu A. T.

Eastern European Economics, 2023 (SSCI) identifier

  • Publication Type: Article / Article
  • Publication Date: 2023
  • Doi Number: 10.1080/00128775.2023.2253217
  • Journal Name: Eastern European Economics
  • Journal Indexes: Social Sciences Citation Index (SSCI), Scopus, Periodicals Index Online, ABI/INFORM, American Bibliography of Slavic & Eastern European Studies (ABSEES), Business Source Elite, Business Source Premier, EconLit, Geobase, PAIS International, Public Affairs Index
  • Keywords: ARDL, corruption, TFP, Turkey
  • Hacettepe University Affiliated: Yes

Abstract

In this study, we investigate the relationship between corruption and total factor productivity (TFP) in Turkey. Our study contributes to the literature in several ways in terms of data, empirical specification, and method. First, we use a new and novel index of corruption for Turkey between the years 1950 and 2014. Second, we estimate the long-run cointegrating relationship between corruption and TFP in Turkey. Finally, we not only investigate how corruption affects TFP, but also if this effect is conditional on government size. We find that corruption decreases TFP in the long-run and its adverse effects on TFP increases with government size.