This article analyzes the relations

This article analyzes the relationship between economic growth and the monitoring
of corruption. In our theoretical model, we derive a nonlinear relationship between the
level of monitoring and economic growth, as well as between corruption and economic
growth. At low monitoring levels, the economy experiences widespread corruption and
medium growth rates, whereas no corruption occurs at intermediate monitoring levels,
but low growth rates are recorded. At high monitoring levels, no corruption takes
place and high growth rates are observed. The model is estimated using a dynamic
panel data approach for Italy. Empirical results support the theoretical model.