We analyze the relationship between economic performance and corruption at the level of Italian provinces, addressing endogeneity problems with three sets of historical instruments: foreign dominations that ruled Italian regions between the 16th and 17th century, autocracy/autonomous rule in the 14th century, and measures of social capital between the end of the 19th and at the onset of the 20th century. Our results suggest a significant role of past historical institutions on both the current levels of corruption and development.
The Historical Economics of Corruption and Development within Italy
Petrarca, Ilaria;Ricciuti, Roberto
2013-01-01
Abstract
We analyze the relationship between economic performance and corruption at the level of Italian provinces, addressing endogeneity problems with three sets of historical instruments: foreign dominations that ruled Italian regions between the 16th and 17th century, autocracy/autonomous rule in the 14th century, and measures of social capital between the end of the 19th and at the onset of the 20th century. Our results suggest a significant role of past historical institutions on both the current levels of corruption and development.
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