Is corruption influenced by economic growth? Are legal institutions such as theud‘Right to Information Act (RTI) 2005’ in India effective in curbing corruption? Usinguda panel dataset covering 20 Indian states for the years 2005 and 2008 we estimateudthe effects of growth and law on corruption. Accounting for endogeneity, omittedudfixed factors, and other nationwide changes we find that economic growth reducesudoverall corruption as well as corruption in banking, land administration, education,udelectricity, and hospitals. Growth reduces bribes but has little impact on corruptionudperception. In contrast the RTI Act reduces both corruption experience andudcorruption perception
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