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Corruption and economic resilience: recovery from the financial crisis in western economies
Author(s) -
Ormerod Paul
Publication year - 2016
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/ecaf.12198
Subject(s) - language change , resilience (materials science) , psychological resilience , financial crisis , economics , mediterranean climate , economy , monetary economics , development economics , macroeconomics , geography , art , psychology , physics , literature , archaeology , psychotherapist , thermodynamics
We consider the resilience of a group of 20 Western economies after the financial crisis of the late 2000s . We measure resilience by the growth of real GDP between 2007 , the previous peak level , and 2015 . The countries exhibit a broad range of experience , from a rise in GDP of 18 per cent in Australia to a fall of 26 per cent in Greece . A substantial proportion of the differences in growth rates can be accounted for by just two variables : the perceived level of corruption and membership of the Eurozone . The euro did have a negative impact on the recovery paths of the Mediterranean economies ( Greece , Italy , Portugal and Spain ), but their perceived corruption scores in 2007 had a bigger impact , especially on the first three of these economies .