@article{2017,title={THE CHANNELS THROUGH WHICH CORRUPTION AFFECT ECONOMIC GROWTH: A CROSS-COUNTRY STUDY},abstractNode={The relationship between corruption and economic growth seems obvious to most people. Corruption increase uncertainty and the cost of doing business, and hence, prevents the entrepreneurial activities that increase economic growth. However, the relationship between corruption and economic growth is more complex than it appears. In this study, the effects of corruption on economics growth are examined in the case of developed and developing countries. This paper investigates not only the direct relationship between corruption and economic growth, but also examines indirect effects through transmission channels. This transmission channels are human capital, political instability, trade openness, total factor productivity and investment channels. The paper differs from other studies on this aspect. The results of the estimations show that a unit increase in the index of corruption increased economic growth by 8%. In addition; the most important transmission channel through which corruption affect economic growth is investment channel.},author={Ömer Faruk ALTUNÇ-- Abdulmecit YILDIRIM},year={2017},journal={The Journal of Academic Social Science}}