**1. Introduction**

Empirical literature in the field has consistently reported a negative correlation between economic growth and corruption. These studies have shown that developed countries are known by low corruption levels and a relatively high growth rate [1], and by contrast, most developing countries are known by high poverty and corruption levels [2, 3].

The novelty of the empirical contribution is that we estimate a nonlinear growth model that allows for threshold effects. To this end, we will use the method proposed by Beck and Katz [4], who suggested estimating linear models of time-series crosssection (TSCS) data by ordinary least squares (OLS). For this, they proposed the panel-corrected standard errors model (PCSE).

The chapter is structured as follows: Section 1 presents a review of both the theoretical and empirical literature; Section 2 presents the research methodology and the main results followed by a discussion of the findings in the final section.
