Introduction: Dildora Salimjonova (Dilly as we all know her), a recently inducted McNair Scholar from the REM 28 cohort. Dilly is a senior and is majoring in Financial Economics. As she finishes her final summer as an undergraduate, she is currently conducting an independent study with the McNair Scholars Summer Research Institute (SRI). Her research is centered around finding a relationship between government regulation and business expansion. On top of her independent research, Dilly is taking Calculus and has also traveled with us to various locations this summer such as the Georgia Institute of Technology and the University of Nevada! She is in her graduate school application process and we are excited to help her through any obstacle she faces! #umbcmcnair #umbc
Abstract: Public sector corruption is prevalent across the different parts of the world. In this study, I examine the effects of public sector corruption on economic performances and quality of institutions. Using cross-country data for 129 countries, I show that the increase in corruption in the public sector reduces the quality of living, measured by income per capita, and reduces the degree of competitiveness in the economy. These results hold even after controlling for other potential determinants of economic growth such as workforce skills and trade openness. My work, thus, points to the importance of paying attention to corruption in the public sector and drafting policies to reduce its prevalence, both in developing and developed countries alike.