The costs and distortions associated to the phenomenon of corruption are a burden for the whole society. While bribery spreads through manifold channels, which are difficult to disentangle, its dramatic effects are clearly evident. Corruption attacks indeed the foundations of social organizations and threatens the credibility and the legitimacy of institutions. This book investigates the economic as well as the socio-institutional dimensions of the problem. It aims at providing an in-depth analysis of the causes and disruptive effects that characterize corruption, so as to suggest remedial measures for policy-making. It also offers an international analysis, entirely supported by rich and up-to-date empirical evidence related to over 150 countries. The impact of bribery is first analyzed in terms of its costs for firms and markets efficiency. Then, the study shifts attention towards a macro perspective and focuses on variables such as economic growth, investments and interest rates. The authors also highlight corruption’s significant impact on countries’ governance – government, parliament, financial regulatory and supervisory authorities – and society: among other things, it assesses the effects of bribery on public expenditure, public education, public health systems, and human development.

Marco Arnone is currently Adjoint Professor of Economics and Finance of Emerging Markets at the University of Eastern Piedmont (Novara, Italy) and has worked as an economist at the IMF. He holds a M.Sc. in Economics (University of Warwick, UK) and a Ph.D. in Economics (University of Pavia, Italy). Among his books: Primary Dealers in Government Securities (IMF 2005), Il Venture Capital per lo Sviluppo (Vita e Pensiero 2006), Central Bank Independence, Accountability, And Transparency: A Global Perspective (Palgrave Macmillan 2009).

Eleni Iliopulos is a post-doc at CEPREMAP (Paris). She holds a M.Sc. in Economics (University of Warwick, UK) and a Ph.D. in Economics (joint University of Pavia and Evry). Latest publication: “UK external imbalances and the sterling: are they on a sustainable path?" (2007), Open Economies Review, vol. 18(5) (with M. Miller).