I've uploaded a very preliminary version of a paper entitled "Economic Growth and the Entrepreneurial Environment" (co-authored with Lisa Verdon, Florida State University) to SSRN. Comments and suggestions welcome. My co-author will present this paper at George Mason in September and at the Southern Economic Association meetings in November. Here's the abstract:

Corruption supposedly reduces economic development by creating an uncertain contracting environment and by preventing the state from efficiently providing public goods and correcting externalities. However, corruption can be efficiency-enhancing in countries with relatively little economic freedom. Corruption in the military appears to reduce economic growth, while corruption in the educational environment appears to increase economic growth.