Corruption and inequality of wealth amongst the very rich

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Abstract

Corruption may lead to tax evasion and unbalanced favors and this may lead to extraordinary wealth amongst a few. We study for 13 countries 6 years of Forbes rankings data and we examine whether corruption leads to more inequality amongst the wealthiest. When we correct in our panel model for current and one-year lagged competitiveness and GDP growth rates, we find no such effect. In fact, we find that more competitiveness decreases inequality amongst the wealthiest.

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Franses, P. H., & de Groot, B. (2016). Corruption and inequality of wealth amongst the very rich. Quality and Quantity, 50(3), 1245–1252. https://doi.org/10.1007/s11135-015-0202-4

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