Local Corruption and Living Standards: Evidence From Africa

The existing literature points to corruption as a significant impediment to economic development and a driver of poverty and inequality. Both corruption perceptions and experiences have been found to correlate with lower self reported life satisfaction and happiness in many, but not all, contexts. A challenge in the literature is that beliefs about corruption and experiences of paying bribes may be shaped by life satisfaction. Using round 8 of the Afrobarometer, this paper contributes to the literature by showing thatt hose living in sub-national regions that are more corrupt report having worse living conditions. The regional intensity of corruption is a significant predictor of living standards, holding one's own experience of paying bribes constant. We further explore this relationship by creating sectoral indicators of local corruption.