WEBVTT Kind: captions Language: en 00:00:08.800 --> 00:00:10.470 align:start position:0% in<00:00:08.960> recent<00:00:09.280> times<00:00:09.599> in<00:00:09.760> many<00:00:10.000> parts<00:00:10.320> of<00:00:10.400> the 00:00:10.470 --> 00:00:10.480 align:start position:0% in recent times in many parts of the 00:00:10.480 --> 00:00:12.549 align:start position:0% in recent times in many parts of the world<00:00:10.800> we've<00:00:10.960> seen<00:00:11.200> enormous<00:00:11.840> increases<00:00:12.400> in 00:00:12.549 --> 00:00:12.559 align:start position:0% world we've seen enormous increases in 00:00:12.559 --> 00:00:14.070 align:start position:0% world we've seen enormous increases in people's<00:00:12.960> incomes 00:00:14.070 --> 00:00:14.080 align:start position:0% people's incomes 00:00:14.080 --> 00:00:16.710 align:start position:0% people's incomes because<00:00:14.559> output<00:00:14.960> has<00:00:15.040> been<00:00:15.280> rising<00:00:16.400> what's 00:00:16.710 --> 00:00:16.720 align:start position:0% because output has been rising what's 00:00:16.720 --> 00:00:18.630 align:start position:0% because output has been rising what's caused<00:00:17.039> the<00:00:17.199> rise<00:00:17.520> in<00:00:17.680> output 00:00:18.630 --> 00:00:18.640 align:start position:0% caused the rise in output 00:00:18.640 --> 00:00:21.349 align:start position:0% caused the rise in output perhaps<00:00:18.960> the<00:00:19.119> most<00:00:19.439> single<00:00:19.920> important<00:00:20.480> thing 00:00:21.349 --> 00:00:21.359 align:start position:0% perhaps the most single important thing 00:00:21.359 --> 00:00:22.070 align:start position:0% perhaps the most single important thing is 00:00:22.070 --> 00:00:22.080 align:start position:0% is 00:00:22.080 --> 00:00:25.189 align:start position:0% is increases<00:00:22.720> in<00:00:22.880> investment<00:00:24.320> more<00:00:24.640> capital 00:00:25.189 --> 00:00:25.199 align:start position:0% increases in investment more capital 00:00:25.199 --> 00:00:25.990 align:start position:0% increases in investment more capital equipment<00:00:25.760> in 00:00:25.990 --> 00:00:26.000 align:start position:0% equipment in 00:00:26.000 --> 00:00:29.029 align:start position:0% equipment in services<00:00:27.279> in<00:00:27.519> manufacturing 00:00:29.029 --> 00:00:29.039 align:start position:0% services in manufacturing 00:00:29.039 --> 00:00:31.429 align:start position:0% services in manufacturing and<00:00:29.279> in<00:00:29.439> lower<00:00:29.840> income<00:00:30.160> societies 00:00:31.429 --> 00:00:31.439 align:start position:0% and in lower income societies 00:00:31.439 --> 00:00:32.549 align:start position:0% and in lower income societies agriculture 00:00:32.549 --> 00:00:32.559 align:start position:0% agriculture 00:00:32.559 --> 00:00:35.190 align:start position:0% agriculture has<00:00:32.800> generated<00:00:33.440> a<00:00:33.760> huge<00:00:34.320> rise<00:00:34.640> in<00:00:34.800> people's 00:00:35.190 --> 00:00:35.200 align:start position:0% has generated a huge rise in people's 00:00:35.200 --> 00:00:37.430 align:start position:0% has generated a huge rise in people's well-being 00:00:37.430 --> 00:00:37.440 align:start position:0% well-being 00:00:37.440 --> 00:00:40.869 align:start position:0% well-being if<00:00:37.760> something<00:00:38.480> causes<00:00:39.120> that<00:00:39.360> level<00:00:39.600> of<00:00:39.840> output 00:00:40.869 --> 00:00:40.879 align:start position:0% if something causes that level of output 00:00:40.879 --> 00:00:43.590 align:start position:0% if something causes that level of output and<00:00:41.040> that<00:00:41.360> level<00:00:41.680> of<00:00:41.840> investment<00:00:42.320> to<00:00:42.559> fall 00:00:43.590 --> 00:00:43.600 align:start position:0% and that level of investment to fall 00:00:43.600 --> 00:00:46.549 align:start position:0% and that level of investment to fall people<00:00:43.920> will<00:00:44.160> suffer 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investment and potential output to fall is<00:00:53.600> corruption<00:00:56.000> before<00:00:56.320> we<00:00:56.480> can<00:00:56.719> think<00:00:56.960> about 00:00:57.430 --> 00:00:57.440 align:start position:0% is corruption before we can think about 00:00:57.440 --> 00:01:00.549 align:start position:0% is corruption before we can think about how<00:00:58.079> corruption<00:00:58.800> might<00:00:59.199> harm<00:00:59.600> investment 00:01:00.549 --> 00:01:00.559 align:start position:0% how corruption might harm investment 00:01:00.559 --> 00:01:01.990 align:start position:0% how corruption might harm investment we<00:01:00.719> need<00:01:00.879> to<00:01:00.960> be<00:01:01.199> clear<00:01:01.520> about<00:01:01.760> what 00:01:01.990 --> 00:01:02.000 align:start position:0% we need to be clear about what 00:01:02.000 --> 00:01:04.549 align:start position:0% we need to be clear about what investment<00:01:02.559> means 00:01:04.549 --> 00:01:04.559 align:start position:0% investment means 00:01:04.559 --> 00:01:07.830 align:start position:0% investment means investment<00:01:05.280> is<00:01:05.519> often<00:01:06.080> used<00:01:07.040> in<00:01:07.200> the<00:01:07.360> popular 00:01:07.830 --> 00:01:07.840 align:start position:0% investment is often used in the popular 00:01:07.840 --> 00:01:08.390 align:start position:0% investment is often used in the popular press 00:01:08.390 --> 00:01:08.400 align:start position:0% press 00:01:08.400 --> 00:01:11.109 align:start position:0% press to<00:01:08.560> mean<00:01:09.200> the<00:01:09.360> purchase<00:01:10.000> of<00:01:10.479> stocks<00:01:10.880> and 00:01:11.109 --> 00:01:11.119 align:start position:0% to mean the purchase of stocks and 00:01:11.119 --> 00:01:12.870 align:start position:0% to mean the purchase of stocks and shares<00:01:11.520> and<00:01:11.600> so<00:01:11.840> on 00:01:12.870 --> 00:01:12.880 align:start position:0% shares and so on 00:01:12.880 --> 00:01:16.469 align:start position:0% shares and so on but<00:01:13.040> to<00:01:13.200> an<00:01:13.360> economist<00:01:15.040> investment<00:01:15.759> means<00:01:16.159> the 00:01:16.469 --> 00:01:16.479 align:start position:0% but to an economist investment means the 00:01:16.479 --> 00:01:17.510 align:start position:0% but to an economist investment means the purchase 00:01:17.510 --> 00:01:17.520 align:start position:0% purchase 00:01:17.520 --> 00:01:21.510 align:start position:0% purchase of<00:01:18.320> capital<00:01:19.040> items<00:01:20.080> machinery 00:01:21.510 --> 00:01:21.520 align:start position:0% of capital items machinery 00:01:21.520 --> 00:01:24.830 align:start position:0% of capital items machinery buildings<00:01:22.320> and<00:01:22.560> so<00:01:22.799> on<00:01:23.280> where<00:01:23.680> output<00:01:24.159> is 00:01:24.830 --> 00:01:24.840 align:start position:0% buildings and so on where output is 00:01:24.840 --> 00:01:26.070 align:start position:0% buildings and so on where output is produced 00:01:26.070 --> 00:01:26.080 align:start position:0% produced 00:01:26.080 --> 00:01:28.310 align:start position:0% produced and<00:01:26.320> investment<00:01:26.880> is<00:01:27.040> incredibly<00:01:27.840> important 00:01:28.310 --> 00:01:28.320 align:start position:0% and investment is incredibly important 00:01:28.320 --> 00:01:30.630 align:start position:0% and investment is incredibly important for<00:01:28.479> the<00:01:28.640> well-being<00:01:29.119> of<00:01:29.280> an<00:01:29.439> economy 00:01:30.630 --> 00:01:30.640 align:start position:0% for the well-being of an economy 00:01:30.640 --> 00:01:33.830 align:start position:0% for the well-being of an economy if<00:01:31.040> something<00:01:32.000> causes<00:01:32.560> us<00:01:32.720> to<00:01:32.960> invest 00:01:33.830 --> 00:01:33.840 align:start position:0% if something causes us to invest 00:01:33.840 --> 00:01:36.550 align:start position:0% if something causes us to invest less<00:01:34.159> as<00:01:34.320> a<00:01:34.400> society<00:01:35.360> if<00:01:35.520> there's<00:01:35.920> less 00:01:36.550 --> 00:01:36.560 align:start position:0% less as a society if there's less 00:01:36.560 --> 00:01:38.230 align:start position:0% less as a society if there's less capital<00:01:37.119> equipment 00:01:38.230 --> 00:01:38.240 align:start position:0% capital equipment 00:01:38.240 --> 00:01:40.870 align:start position:0% capital equipment then<00:01:38.400> we're<00:01:38.560> going<00:01:38.720> to<00:01:38.799> produce<00:01:39.280> less<00:01:39.920> output 00:01:40.870 --> 00:01:40.880 align:start position:0% then we're going to produce less output 00:01:40.880 --> 00:01:42.230 align:start position:0% then we're going to produce less output and<00:01:41.040> if<00:01:41.200> we<00:01:41.360> produce<00:01:41.840> less 00:01:42.230 --> 00:01:42.240 align:start position:0% and if we produce less 00:01:42.240 --> 00:01:44.789 align:start position:0% and if we produce less output<00:01:43.200> we're<00:01:43.360> going<00:01:43.520> to<00:01:43.600> be<00:01:43.840> worse<00:01:44.240> off 00:01:44.789 --> 00:01:44.799 align:start position:0% output we're going to be worse off 00:01:44.799 --> 00:01:45.670 align:start position:0% output we're going to be worse off because<00:01:45.119> we've<00:01:45.360> got 00:01:45.670 --> 00:01:45.680 align:start position:0% because we've got 00:01:45.680 --> 00:01:48.950 align:start position:0% because we've got less<00:01:46.399> goods<00:01:46.720> and<00:01:46.880> services<00:01:48.320> having<00:01:48.640> thought 00:01:48.950 --> 00:01:48.960 align:start position:0% less goods and services having thought 00:01:48.960 --> 00:01:49.590 align:start position:0% less goods and services having thought about 00:01:49.590 --> 00:01:49.600 align:start position:0% about 00:01:49.600 --> 00:01:51.749 align:start position:0% about what<00:01:49.920> investment<00:01:50.640> means<00:01:51.200> we're<00:01:51.360> now<00:01:51.600> in<00:01:51.680> a 00:01:51.749 --> 00:01:51.759 align:start position:0% what investment means we're now in a 00:01:51.759 --> 00:01:53.429 align:start position:0% what investment means we're now in a position<00:01:52.159> to<00:01:52.320> think<00:01:52.560> about<00:01:52.960> how 00:01:53.429 --> 00:01:53.439 align:start position:0% position to think about how 00:01:53.439 --> 00:01:57.350 align:start position:0% position to think about how an<00:01:53.759> increase<00:01:54.320> in<00:01:54.560> corruption<00:01:55.759> might<00:01:56.079> affect 00:01:57.350 --> 00:01:57.360 align:start position:0% an increase in corruption might affect 00:01:57.360 --> 00:02:00.310 align:start position:0% an increase in corruption might affect investment<00:01:58.560> the<00:01:58.799> amount<00:01:59.360> of<00:01:59.840> capital 00:02:00.310 --> 00:02:00.320 align:start position:0% investment the amount of capital 00:02:00.320 --> 00:02:01.030 align:start position:0% investment the amount of capital equipment 00:02:01.030 --> 00:02:01.040 align:start position:0% equipment 00:02:01.040 --> 00:02:04.389 align:start position:0% equipment in<00:02:01.200> the<00:02:01.360> economy 00:02:04.389 --> 00:02:04.399 align:start position:0% 00:02:04.399 --> 00:02:07.429 align:start position:0% just<00:02:04.640> as<00:02:04.719> one<00:02:04.960> example<00:02:05.920> of<00:02:06.079> the<00:02:06.320> value<00:02:06.719> of 00:02:07.429 --> 00:02:07.439 align:start position:0% just as one example of the value of 00:02:07.439 --> 00:02:10.070 align:start position:0% just as one example of the value of to<00:02:07.600> a<00:02:07.680> society<00:02:08.720> this<00:02:09.119> chicken<00:02:09.440> processing 00:02:10.070 --> 00:02:10.080 align:start position:0% to a society this chicken processing 00:02:10.080 --> 00:02:11.510 align:start position:0% to a society this chicken processing plant<00:02:10.399> in<00:02:10.479> eastern<00:02:10.800> europe 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position:0% than doubled 00:02:18.239 --> 00:02:21.350 align:start position:0% than doubled from<00:02:18.480> the<00:02:18.640> same<00:02:18.959> number<00:02:19.280> of<00:02:19.440> workers<00:02:20.720> raising 00:02:21.350 --> 00:02:21.360 align:start position:0% from the same number of workers raising 00:02:21.360 --> 00:02:21.990 align:start position:0% from the same number of workers raising national 00:02:21.990 --> 00:02:22.000 align:start position:0% national 00:02:22.000 --> 00:02:25.270 align:start position:0% national output<00:02:22.720> and<00:02:22.879> national<00:02:23.360> income<00:02:24.480> it's<00:02:24.800> been<00:02:24.959> so 00:02:25.270 --> 00:02:25.280 align:start position:0% output and national income it's been so 00:02:25.280 --> 00:02:26.390 align:start position:0% output and national income it's been so successful 00:02:26.390 --> 00:02:26.400 align:start position:0% successful 00:02:26.400 --> 00:02:28.229 align:start position:0% successful that<00:02:26.560> they're<00:02:26.879> now<00:02:27.200> investing<00:02:27.760> in<00:02:28.000> new 00:02:28.229 --> 00:02:28.239 align:start position:0% that they're now investing in new 00:02:28.239 --> 00:02:31.110 align:start position:0% that they're now investing in new machinery<00:02:29.200> to<00:02:29.360> produce<00:02:29.840> related<00:02:30.400> products 00:02:31.110 --> 00:02:31.120 align:start position:0% machinery to produce related products 00:02:31.120 --> 00:02:33.910 align:start position:0% machinery to produce related products such<00:02:31.360> as<00:02:31.599> sausages<00:02:32.560> and<00:02:32.720> other<00:02:32.879> food<00:02:33.200> products 00:02:33.910 --> 00:02:33.920 align:start position:0% such as sausages and other food products 00:02:33.920 --> 00:02:35.110 align:start position:0% such as sausages and other food products and<00:02:34.160> hence<00:02:34.560> raise 00:02:35.110 --> 00:02:35.120 align:start position:0% and hence raise 00:02:35.120 --> 00:02:38.869 align:start position:0% and hence raise economic<00:02:35.680> well-being<00:02:37.760> how<00:02:37.920> might<00:02:38.160> corruption 00:02:38.869 --> 00:02:38.879 align:start position:0% economic well-being how might corruption 00:02:38.879 --> 00:02:42.229 align:start position:0% economic well-being how might corruption discourage<00:02:39.599> investment<00:02:41.360> well<00:02:41.599> in<00:02:41.680> many<00:02:42.000> ways 00:02:42.229 --> 00:02:42.239 align:start position:0% discourage investment well in many ways 00:02:42.239 --> 00:02:43.190 align:start position:0% discourage investment well in many ways but<00:02:42.480> we'll<00:02:42.640> mention 00:02:43.190 --> 00:02:43.200 align:start position:0% but we'll mention 00:02:43.200 --> 00:02:46.710 align:start position:0% but we'll mention two<00:02:44.000> first<00:02:45.040> bribes<00:02:45.519> to<00:02:45.760> officials 00:02:46.710 --> 00:02:46.720 align:start position:0% two first bribes to officials 00:02:46.720 --> 00:02:49.509 align:start position:0% two first bribes to officials act<00:02:47.040> as<00:02:47.200> a<00:02:47.280> tax<00:02:47.599> on<00:02:47.840> profits<00:02:48.800> discouraging 00:02:49.509 --> 00:02:49.519 align:start position:0% act as a tax on profits discouraging 00:02:49.519 --> 00:02:50.229 align:start position:0% act as a tax on profits discouraging marginal 00:02:50.229 --> 00:02:50.239 align:start position:0% marginal 00:02:50.239 --> 00:02:53.830 align:start position:0% marginal investment<00:02:52.080> but<00:02:52.319> second<00:02:53.200> and<00:02:53.360> just<00:02:53.599> as 00:02:53.830 --> 00:02:53.840 align:start position:0% investment but second and just as 00:02:53.840 --> 00:02:55.030 align:start position:0% investment but second and just as important 00:02:55.030 --> 00:02:55.040 align:start position:0% important 00:02:55.040 --> 00:02:57.190 align:start position:0% important as<00:02:55.200> the<00:02:55.360> world<00:02:55.680> development<00:02:56.239> report<00:02:56.640> says 00:02:57.190 --> 00:02:57.200 align:start position:0% as the world development report says 00:02:57.200 --> 00:02:59.190 align:start position:0% as the world development report says bribes<00:02:57.599> are<00:02:57.680> not<00:02:57.840> only<00:02:58.159> a<00:02:58.239> disincentive<00:02:59.040> to 00:02:59.190 --> 00:02:59.200 align:start position:0% bribes are not only a disincentive to 00:02:59.200 --> 00:03:00.470 align:start position:0% bribes are not only a disincentive to further<00:02:59.599> investment 00:03:00.470 --> 00:03:00.480 align:start position:0% further investment 00:03:00.480 --> 00:03:03.270 align:start position:0% further investment because<00:03:00.800> of<00:03:00.879> the<00:03:01.040> immediate<00:03:01.599> costs<00:03:02.720> but<00:03:02.959> also 00:03:03.270 --> 00:03:03.280 align:start position:0% because of the immediate costs but also 00:03:03.280 --> 00:03:04.550 align:start position:0% because of the immediate costs but also because<00:03:03.680> they<00:03:03.920> entangle 00:03:04.550 --> 00:03:04.560 align:start position:0% because they entangle 00:03:04.560 --> 00:03:07.030 align:start position:0% because they entangle businesses<00:03:05.200> in<00:03:05.519> quote<00:03:06.159> a<00:03:06.400> web<00:03:06.800> of 00:03:07.030 --> 00:03:07.040 align:start position:0% businesses in quote a web of 00:03:07.040 --> 00:03:08.229 align:start position:0% businesses in quote a web of time-consuming 00:03:08.229 --> 00:03:08.239 align:start position:0% time-consuming 00:03:08.239 --> 00:03:11.430 align:start position:0% time-consuming and<00:03:08.400> economically<00:03:09.200> unproductive<00:03:10.000> relations 00:03:11.430 --> 00:03:11.440 align:start position:0% and economically unproductive relations 00:03:11.440 --> 00:03:13.990 align:start position:0% and economically unproductive relations what<00:03:11.760> is<00:03:11.920> going<00:03:12.239> to<00:03:12.640> prevent<00:03:13.120> them<00:03:13.360> from 00:03:13.990 --> 00:03:14.000 align:start position:0% what is going to prevent them from 00:03:14.000 --> 00:03:14.790 align:start position:0% what is going to prevent them from investing 00:03:14.790 --> 00:03:14.800 align:start position:0% investing 00:03:14.800 --> 00:03:17.350 align:start position:0% investing in<00:03:14.959> the<00:03:15.040> country<00:03:15.920> is<00:03:16.080> that<00:03:16.239> they<00:03:16.800> don't<00:03:17.120> really 00:03:17.350 --> 00:03:17.360 align:start position:0% in the country is that they don't really 00:03:17.360 --> 00:03:17.990 align:start position:0% in the country is that they don't really know 00:03:17.990 --> 00:03:18.000 align:start position:0% know 00:03:18.000 --> 00:03:19.830 align:start position:0% know the<00:03:18.159> rules<00:03:18.560> of<00:03:18.640> corruption<00:03:19.280> because<00:03:19.680> if 00:03:19.830 --> 00:03:19.840 align:start position:0% the rules of corruption because if 00:03:19.840 --> 00:03:21.589 align:start position:0% the rules of corruption because if you're<00:03:20.239> acquainted<00:03:20.800> with<00:03:20.959> the<00:03:21.040> rules<00:03:21.440> it 00:03:21.589 --> 00:03:21.599 align:start position:0% you're acquainted with the rules it 00:03:21.599 --> 00:03:22.470 align:start position:0% you're acquainted with the rules it becomes 00:03:22.470 --> 00:03:22.480 align:start position:0% becomes 00:03:22.480 --> 00:03:25.990 align:start position:0% becomes very<00:03:22.800> easy<00:03:23.120> you<00:03:23.280> just<00:03:23.519> calculate<00:03:25.200> bribes 00:03:25.990 --> 00:03:26.000 align:start position:0% very easy you just calculate bribes 00:03:26.000 --> 00:03:29.350 align:start position:0% very easy you just calculate bribes and<00:03:26.560> corruption<00:03:27.200> into<00:03:27.519> your<00:03:27.760> costs<00:03:28.799> and 00:03:29.350 --> 00:03:29.360 align:start position:0% and corruption into your costs and 00:03:29.360 --> 00:03:31.910 align:start position:0% and corruption into your costs and if<00:03:29.440> you<00:03:29.599> know<00:03:30.239> uh<00:03:30.560> who<00:03:30.720> are<00:03:30.879> the<00:03:30.959> people<00:03:31.760> that 00:03:31.910 --> 00:03:31.920 align:start position:0% if you know uh who are the people that 00:03:31.920 --> 00:03:33.589 align:start position:0% if you know uh who are the people that you're<00:03:32.159> supposed<00:03:32.560> to<00:03:32.799> pay 00:03:33.589 --> 00:03:33.599 align:start position:0% you're supposed to pay 00:03:33.599 --> 00:03:37.589 align:start position:0% you're supposed to pay uh<00:03:34.159> to<00:03:35.120> it<00:03:35.519> it's<00:03:35.920> life<00:03:36.239> is<00:03:36.400> very<00:03:36.640> easy 00:03:37.589 --> 00:03:37.599 align:start position:0% uh to it it's life is very easy 00:03:37.599 --> 00:03:39.990 align:start position:0% uh to it it's life is very easy but<00:03:37.840> if<00:03:37.920> you<00:03:38.080> don't<00:03:38.319> know<00:03:38.560> that<00:03:39.280> uh<00:03:39.760> you're 00:03:39.990 --> 00:03:40.000 align:start position:0% but if you don't know that uh you're 00:03:40.000 --> 00:03:41.110 align:start position:0% but if you don't know that uh you're struggling 00:03:41.110 --> 00:03:41.120 align:start position:0% struggling 00:03:41.120 --> 00:03:50.149 align:start position:0% struggling there's<00:03:41.360> no<00:03:41.519> way<00:03:41.760> to<00:03:41.920> go<00:03:42.080> around<00:03:44.840> it 00:03:50.149 --> 00:03:50.159 align:start position:0% 00:03:50.159 --> 00:03:52.390 align:start position:0% i'm<00:03:50.400> in<00:03:50.560> greece<00:03:51.440> which<00:03:51.680> is<00:03:51.840> reckoned<00:03:52.080> to<00:03:52.239> be 00:03:52.390 --> 00:03:52.400 align:start position:0% i'm in greece which is reckoned to be 00:03:52.400 --> 00:03:55.030 align:start position:0% i'm in greece which is reckoned to be the<00:03:52.560> most<00:03:52.799> corrupt<00:03:53.200> country<00:03:53.680> in<00:03:53.760> the<00:03:53.920> eu 00:03:55.030 --> 00:03:55.040 align:start position:0% the most corrupt country in the eu 00:03:55.040 --> 00:03:58.390 align:start position:0% the most corrupt country in the eu it's<00:03:55.280> reckoned<00:03:55.599> that<00:03:55.920> 500<00:03:56.480> to<00:03:56.840> 750<00:03:57.920> million 00:03:58.390 --> 00:03:58.400 align:start position:0% it's reckoned that 500 to 750 million 00:03:58.400 --> 00:03:59.429 align:start position:0% it's reckoned that 500 to 750 million euros 00:03:59.429 --> 00:03:59.439 align:start position:0% euros 00:03:59.439 --> 00:04:01.990 align:start position:0% euros changes<00:03:59.920> hands<00:04:00.319> in<00:04:00.400> the<00:04:00.560> form<00:04:00.799> of<00:04:00.959> bribes 00:04:01.990 --> 00:04:02.000 align:start position:0% changes hands in the form of bribes 00:04:02.000 --> 00:04:03.350 align:start position:0% changes hands in the form of bribes involving<00:04:02.480> something<00:04:02.879> of 00:04:03.350 --> 00:04:03.360 align:start position:0% involving something of 00:04:03.360 --> 00:04:05.589 align:start position:0% involving something of the<00:04:03.519> order<00:04:03.840> of<00:04:04.080> ten<00:04:04.400> percent<00:04:05.360> of<00:04:05.439> the 00:04:05.589 --> 00:04:05.599 align:start position:0% the order of ten percent of the 00:04:05.599 --> 00:04:08.229 align:start position:0% the order of ten percent of the population<00:04:06.239> of<00:04:06.319> the<00:04:06.480> country 00:04:08.229 --> 00:04:08.239 align:start position:0% population of the country 00:04:08.239 --> 00:04:11.509 align:start position:0% population of the country what<00:04:08.480> those<00:04:08.799> bribes<00:04:09.280> get<00:04:09.599> used<00:04:10.080> for<00:04:11.040> the<00:04:11.200> main 00:04:11.509 --> 00:04:11.519 align:start position:0% what those bribes get used for the main 00:04:11.519 --> 00:04:12.229 align:start position:0% what those bribes get used for the main things 00:04:12.229 --> 00:04:12.239 align:start position:0% things 00:04:12.239 --> 00:04:16.469 align:start position:0% things are<00:04:13.120> doctors<00:04:14.879> building<00:04:15.360> permits 00:04:16.469 --> 00:04:16.479 align:start position:0% are doctors building permits 00:04:16.479 --> 00:04:18.949 align:start position:0% are doctors building permits and<00:04:16.639> perhaps<00:04:17.040> most<00:04:17.359> important<00:04:17.759> of<00:04:17.919> all<00:04:18.799> to 00:04:18.949 --> 00:04:18.959 align:start position:0% and perhaps most important of all to 00:04:18.959 --> 00:04:21.590 align:start position:0% and perhaps most important of all to help<00:04:19.280> tax<00:04:19.600> evasion 00:04:21.590 --> 00:04:21.600 align:start position:0% help tax evasion 00:04:21.600 --> 00:04:23.670 align:start position:0% help tax evasion you<00:04:21.759> give<00:04:21.919> the<00:04:22.079> tax<00:04:22.400> officials<00:04:22.880> some<00:04:23.040> money 00:04:23.670 --> 00:04:23.680 align:start position:0% you give the tax officials some money 00:04:23.680 --> 00:04:25.270 align:start position:0% you give the tax officials some money and<00:04:23.840> then<00:04:24.000> you<00:04:24.160> pay<00:04:24.479> less<00:04:24.720> tax<00:04:24.960> for<00:04:25.120> the 00:04:25.270 --> 00:04:25.280 align:start position:0% and then you pay less tax for the 00:04:25.280 --> 00:04:26.950 align:start position:0% and then you pay less tax for the government 00:04:26.950 --> 00:04:26.960 align:start position:0% government 00:04:26.960 --> 00:04:28.629 align:start position:0% government relatively<00:04:27.520> few<00:04:27.840> people<00:04:28.160> in<00:04:28.240> greece<00:04:28.560> are 00:04:28.629 --> 00:04:28.639 align:start position:0% relatively few people in greece are 00:04:28.639 --> 00:04:30.790 align:start position:0% relatively few people in greece are willing<00:04:28.960> to<00:04:29.120> talk<00:04:29.360> about<00:04:29.600> corruption 00:04:30.790 --> 00:04:30.800 align:start position:0% willing to talk about corruption 00:04:30.800 --> 00:04:33.510 align:start position:0% willing to talk about corruption but<00:04:30.960> in<00:04:31.120> small<00:04:31.520> cafes<00:04:32.400> you<00:04:32.639> find<00:04:32.880> no<00:04:33.120> shortage 00:04:33.510 --> 00:04:33.520 align:start position:0% but in small cafes you find no shortage 00:04:33.520 --> 00:04:34.710 align:start position:0% but in small cafes you find no shortage of<00:04:33.600> opinions 00:04:34.710 --> 00:04:34.720 align:start position:0% of opinions 00:04:34.720 --> 00:04:36.790 align:start position:0% of opinions have<00:04:34.960> you<00:04:35.120> had<00:04:35.360> any<00:04:35.680> trouble<00:04:36.000> in<00:04:36.160> the<00:04:36.320> business 00:04:36.790 --> 00:04:36.800 align:start position:0% have you had any trouble in the business 00:04:36.800 --> 00:04:37.830 align:start position:0% have you had any trouble in the business with<00:04:37.199> the 00:04:37.830 --> 00:04:37.840 align:start position:0% with the 00:04:37.840 --> 00:04:41.030 align:start position:0% with the famous<00:04:38.639> fakiaki<00:04:39.840> has<00:04:40.240> have<00:04:40.400> i<00:04:40.560> pronounced 00:04:41.030 --> 00:04:41.040 align:start position:0% famous fakiaki has have i pronounced 00:04:41.040 --> 00:04:42.150 align:start position:0% famous fakiaki has have i pronounced that<00:04:41.280> right 00:04:42.150 --> 00:04:42.160 align:start position:0% that right 00:04:42.160 --> 00:04:44.390 align:start position:0% that right yeah<00:04:42.479> i<00:04:42.560> understand<00:04:42.880> with<00:04:43.040> me<00:04:43.360> this<00:04:43.520> is<00:04:43.680> mostly 00:04:44.390 --> 00:04:44.400 align:start position:0% yeah i understand with me this is mostly 00:04:44.400 --> 00:04:45.189 align:start position:0% yeah i understand with me this is mostly in<00:04:44.639> the 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things and when you go there you<00:04:56.880> have<00:04:57.040> to<00:04:57.199> finish<00:04:57.520> something<00:04:58.800> to<00:04:58.960> do<00:04:59.120> your 00:04:59.590 --> 00:04:59.600 align:start position:0% you have to finish something to do your 00:04:59.600 --> 00:05:00.710 align:start position:0% you have to finish something to do your to<00:04:59.759> do<00:04:59.919> your<00:05:00.080> business 00:05:00.710 --> 00:05:00.720 align:start position:0% to do your business 00:05:00.720 --> 00:05:03.830 align:start position:0% to do your business you<00:05:00.960> give<00:05:01.759> under<00:05:02.160> the<00:05:02.240> table<00:05:03.280> this<00:05:03.520> was<00:05:03.759> your 00:05:03.830 --> 00:05:03.840 align:start position:0% you give under the table this was your 00:05:03.840 --> 00:05:05.510 align:start position:0% you give under the table this was your name 00:05:05.510 --> 00:05:05.520 align:start position:0% name 00:05:05.520 --> 00:05:07.909 align:start position:0% name if<00:05:05.680> you<00:05:05.759> have<00:05:06.000> problems<00:05:06.320> with<00:05:06.560> the<00:05:06.720> tax<00:05:06.960> house 00:05:07.909 --> 00:05:07.919 align:start position:0% if you have problems with the tax house 00:05:07.919 --> 00:05:09.430 align:start position:0% if you have problems with the tax house let's<00:05:08.160> say<00:05:08.400> you<00:05:08.560> have<00:05:08.720> to<00:05:08.880> pay 00:05:09.430 --> 00:05:09.440 align:start position:0% let's say you have to pay 00:05:09.440 --> 00:05:11.990 align:start position:0% let's say you have to pay a<00:05:09.600> hundred<00:05:09.840> thousand<00:05:10.240> euros<00:05:11.199> and<00:05:11.440> you<00:05:11.759> deal 00:05:11.990 --> 00:05:12.000 align:start position:0% a hundred thousand euros and you deal 00:05:12.000 --> 00:05:12.870 align:start position:0% a hundred thousand euros and you deal with<00:05:12.320> the 00:05:12.870 --> 00:05:12.880 align:start position:0% with the 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to<00:05:20.080> benefit 00:05:22.310 --> 00:05:22.320 align:start position:0% it's obviously you have to benefit 00:05:22.320 --> 00:05:24.390 align:start position:0% it's obviously you have to benefit about<00:05:22.639> ten<00:05:22.800> percent<00:05:23.199> of<00:05:23.360> citizens<00:05:23.919> pay<00:05:24.160> the 00:05:24.390 --> 00:05:24.400 align:start position:0% about ten percent of citizens pay the 00:05:24.400 --> 00:05:25.350 align:start position:0% about ten percent of citizens pay the so-called 00:05:25.350 --> 00:05:25.360 align:start position:0% so-called 00:05:25.360 --> 00:05:29.270 align:start position:0% so-called fakaliaki<00:05:26.639> little<00:05:27.039> envelopes<00:05:28.080> each<00:05:28.400> year 00:05:29.270 --> 00:05:29.280 align:start position:0% fakaliaki little envelopes each year 00:05:29.280 --> 00:05:32.550 align:start position:0% fakaliaki little envelopes each year it<00:05:29.520> is<00:05:29.680> true<00:05:29.919> that<00:05:30.240> um<00:05:30.960> there<00:05:31.199> is<00:05:31.360> an<00:05:31.520> issue<00:05:31.840> of 00:05:32.550 --> 00:05:32.560 align:start position:0% it is true that um there is an issue of 00:05:32.560 --> 00:05:35.670 align:start position:0% it is true that um there is an issue of of<00:05:32.800> corruption<00:05:33.600> in<00:05:33.840> in<00:05:34.000> greece<00:05:34.479> is<00:05:34.720> part<00:05:35.199> of 00:05:35.670 --> 00:05:35.680 align:start position:0% of corruption in in greece is part of 00:05:35.680 --> 00:05:37.590 align:start position:0% of corruption in in greece is part of the<00:05:35.840> system<00:05:36.240> of<00:05:36.320> the<00:05:36.479> businesses 00:05:37.590 --> 00:05:37.600 align:start position:0% the system of the businesses 00:05:37.600 --> 00:05:40.710 align:start position:0% the system of the businesses it's<00:05:37.759> not<00:05:38.000> a<00:05:38.160> cultural<00:05:39.039> issue<00:05:39.680> and<00:05:40.320> it<00:05:40.479> not 00:05:40.710 --> 00:05:40.720 align:start position:0% it's not a cultural issue and it not 00:05:40.720 --> 00:05:43.590 align:start position:0% it's not a cultural issue and it not referred<00:05:41.120> doesn't<00:05:41.360> refer<00:05:41.759> only<00:05:42.160> to<00:05:42.320> greece 00:05:43.590 --> 00:05:43.600 align:start position:0% referred doesn't refer only to greece 00:05:43.600 --> 00:05:45.189 align:start position:0% referred doesn't refer only to greece for<00:05:43.840> me<00:05:44.080> and<00:05:44.240> for<00:05:44.400> the<00:05:44.560> things<00:05:44.800> that<00:05:44.960> i<00:05:45.039> have 00:05:45.189 --> 00:05:45.199 align:start position:0% for me and for the things that i have 00:05:45.199 --> 00:05:47.350 align:start position:0% for me and for the things that i have seen<00:05:45.440> and<00:05:45.600> i<00:05:45.680> have<00:05:45.840> investigated<00:05:46.639> is<00:05:46.880> more 00:05:47.350 --> 00:05:47.360 align:start position:0% seen and i have investigated is more 00:05:47.360 --> 00:05:50.390 align:start position:0% seen and i have investigated is more a<00:05:47.520> structural<00:05:48.639> issue<00:05:49.360> which<00:05:49.600> means<00:05:49.919> that 00:05:50.390 --> 00:05:50.400 align:start position:0% a structural issue which means that 00:05:50.400 --> 00:05:53.510 align:start position:0% a structural issue which means that the<00:05:50.639> system<00:05:51.120> is<00:05:51.600> developed<00:05:52.560> in 00:05:53.510 --> 00:05:53.520 align:start position:0% the system is developed in 00:05:53.520 --> 00:05:56.870 align:start position:0% the system is developed in that<00:05:53.759> way<00:05:54.639> that<00:05:55.759> most<00:05:56.000> of<00:05:56.160> the<00:05:56.319> times<00:05:56.639> you 00:05:56.870 --> 00:05:56.880 align:start position:0% that way that most of the times you 00:05:56.880 --> 00:06:00.150 align:start position:0% that way that most of the times you don't<00:05:57.120> have<00:05:57.360> any<00:05:57.600> other<00:05:57.840> option 00:06:00.150 --> 00:06:00.160 align:start position:0% don't have any other option 00:06:00.160 --> 00:06:04.070 align:start position:0% don't have any other option than<00:06:00.639> to<00:06:01.120> try<00:06:01.600> to<00:06:01.840> find<00:06:02.880> other<00:06:03.199> ways 00:06:04.070 --> 00:06:04.080 align:start position:0% than to try to find other ways 00:06:04.080 --> 00:06:07.110 align:start position:0% than to try to find other ways to<00:06:04.240> do<00:06:04.400> your<00:06:04.840> business<00:06:06.160> some 00:06:07.110 --> 00:06:07.120 align:start position:0% to do your business some 00:06:07.120 --> 00:06:09.590 align:start position:0% to do your business some time<00:06:07.360> ago<00:06:07.680> some<00:06:07.919> years<00:06:08.160> ago<00:06:08.720> it<00:06:08.880> was<00:06:09.199> okay 00:06:09.590 --> 00:06:09.600 align:start position:0% time ago some years ago it was okay 00:06:09.600 --> 00:06:11.110 align:start position:0% time ago some years ago it was okay normal<00:06:10.000> to<00:06:10.160> pay<00:06:10.319> if<00:06:10.479> i<00:06:10.560> can 00:06:11.110 --> 00:06:11.120 align:start position:0% normal to pay if i can 00:06:11.120 --> 00:06:13.189 align:start position:0% normal to pay if i can give<00:06:11.360> money<00:06:11.680> under<00:06:11.840> the<00:06:12.000> table<00:06:12.639> now<00:06:12.960> people 00:06:13.189 --> 00:06:13.199 align:start position:0% give money under the table now people 00:06:13.199 --> 00:06:14.150 align:start position:0% give money under the table now people are<00:06:13.360> afraid 00:06:14.150 --> 00:06:14.160 align:start position:0% are afraid 00:06:14.160 --> 00:06:15.510 align:start position:0% are afraid all<00:06:14.319> these<00:06:14.560> people<00:06:14.880> in<00:06:14.960> the<00:06:15.039> government<00:06:15.440> are 00:06:15.510 --> 00:06:15.520 align:start position:0% all these people in the government are 00:06:15.520 --> 00:06:17.510 align:start position:0% all these people in the government are afraid<00:06:16.080> and<00:06:16.319> they<00:06:16.560> don't<00:06:16.800> take<00:06:17.039> it<00:06:17.120> that<00:06:17.280> much 00:06:17.510 --> 00:06:17.520 align:start position:0% afraid and they don't take it that much 00:06:17.520 --> 00:06:19.029 align:start position:0% afraid and they don't take it that much because<00:06:17.840> in<00:06:17.919> the<00:06:18.000> television<00:06:18.479> they<00:06:18.800> see 00:06:19.029 --> 00:06:19.039 align:start position:0% because in the television they see 00:06:19.039 --> 00:06:20.629 align:start position:0% because in the television they see you<00:06:19.520> can<00:06:19.600> see<00:06:19.759> your<00:06:19.919> face<00:06:20.240> if<00:06:20.319> you<00:06:20.479> take 00:06:20.629 --> 00:06:20.639 align:start position:0% you can see your face if you take 00:06:20.639 --> 00:06:22.309 align:start position:0% you can see your face if you take [ __ ]<00:06:20.960> like<00:06:21.280> that<00:06:21.440> they<00:06:21.759> have<00:06:22.000> the<00:06:22.080> other 00:06:22.309 --> 00:06:22.319 align:start position:0% [ __ ] like that they have the other 00:06:22.319 --> 00:06:22.629 align:start position:0% [ __ ] like that they have the other day 00:06:22.629 --> 00:06:22.639 align:start position:0% day 00:06:22.639 --> 00:06:24.390 align:start position:0% day the<00:06:23.280> people<00:06:23.520> that<00:06:23.680> take<00:06:23.919> the<00:06:24.000> money<00:06:24.240> are 00:06:24.390 --> 00:06:24.400 align:start position:0% the people that take the money are 00:06:24.400 --> 00:06:26.790 align:start position:0% the people that take the money are afraid<00:06:24.720> of<00:06:25.520> it<00:06:25.680> is<00:06:25.840> very<00:06:26.080> because<00:06:26.400> you<00:06:26.560> go 00:06:26.790 --> 00:06:26.800 align:start position:0% afraid of it is very because you go 00:06:26.800 --> 00:06:28.550 align:start position:0% afraid of it is very because you go straight<00:06:27.039> to<00:06:27.199> the<00:06:27.280> jail<00:06:27.520> now<00:06:27.759> and<00:06:28.160> they<00:06:28.400> are 00:06:28.550 --> 00:06:28.560 align:start position:0% straight to the jail now and they are 00:06:28.560 --> 00:06:29.990 align:start position:0% straight to the jail now and they are afraid 00:06:29.990 --> 00:06:30.000 align:start position:0% afraid 00:06:30.000 --> 00:06:31.510 align:start position:0% afraid but<00:06:30.160> even<00:06:30.400> countries<00:06:30.880> perceived<00:06:31.360> as 00:06:31.510 --> 00:06:31.520 align:start position:0% but even countries perceived as 00:06:31.520 --> 00:06:33.189 align:start position:0% but even countries perceived as relatively<00:06:32.080> free<00:06:32.319> of<00:06:32.479> corruption 00:06:33.189 --> 00:06:33.199 align:start position:0% relatively free of corruption 00:06:33.199 --> 00:06:36.150 align:start position:0% relatively free of corruption have<00:06:33.520> some<00:06:33.759> problems<00:06:35.440> does<00:06:35.600> greece<00:06:35.840> have<00:06:36.080> a 00:06:36.150 --> 00:06:36.160 align:start position:0% have some problems does greece have a 00:06:36.160 --> 00:06:37.590 align:start position:0% have some problems does greece have a problem<00:06:36.560> yes<00:06:36.800> it<00:06:36.960> does 00:06:37.590 --> 00:06:37.600 align:start position:0% problem yes it does 00:06:37.600 --> 00:06:39.270 align:start position:0% problem yes it does do<00:06:37.840> the<00:06:38.000> surrounding<00:06:38.560> countries<00:06:38.960> have<00:06:39.199> a 00:06:39.270 --> 00:06:39.280 align:start position:0% do the surrounding countries have a 00:06:39.280 --> 00:06:41.189 align:start position:0% do the surrounding countries have a problem<00:06:40.000> yes<00:06:40.240> they<00:06:40.479> do 00:06:41.189 --> 00:06:41.199 align:start position:0% problem yes they do 00:06:41.199 --> 00:06:44.230 align:start position:0% problem yes they do does<00:06:42.639> the<00:06:42.880> uk<00:06:43.360> have<00:06:43.520> a<00:06:43.680> problem 00:06:44.230 --> 00:06:44.240 align:start position:0% does the uk have a problem 00:06:44.240 --> 00:06:46.790 align:start position:0% does the uk have a problem yes<00:06:44.479> they<00:06:44.639> do<00:06:44.960> but<00:06:45.120> we<00:06:45.280> call<00:06:45.520> it<00:06:45.680> lobbying<00:06:46.639> we 00:06:46.790 --> 00:06:46.800 align:start position:0% yes they do but we call it lobbying we 00:06:46.800 --> 00:06:48.790 align:start position:0% yes they do but we call it lobbying we don't<00:06:46.960> call<00:06:47.199> it<00:06:47.280> corruption 00:06:48.790 --> 00:06:48.800 align:start position:0% don't call it corruption 00:06:48.800 --> 00:06:50.309 align:start position:0% don't call it corruption all<00:06:49.039> the<00:06:49.120> evidence<00:06:49.520> suggests<00:06:50.000> that<00:06:50.160> there's 00:06:50.309 --> 00:06:50.319 align:start position:0% all the evidence suggests that there's 00:06:50.319 --> 00:06:52.710 align:start position:0% all the evidence suggests that there's corruption<00:06:50.880> in<00:06:50.960> just<00:06:51.199> about<00:06:51.440> all<00:06:51.680> societies 00:06:52.710 --> 00:06:52.720 align:start position:0% corruption in just about all societies 00:06:52.720 --> 00:06:55.749 align:start position:0% corruption in just about all societies but<00:06:52.960> it<00:06:53.120> varies<00:06:53.599> hugely<00:06:55.120> in<00:06:55.280> places<00:06:55.599> like 00:06:55.749 --> 00:06:55.759 align:start position:0% but it varies hugely in places like 00:06:55.759 --> 00:06:57.909 align:start position:0% but it varies hugely in places like scandinavia<00:06:56.560> it's<00:06:56.800> clearly<00:06:57.120> very<00:06:57.440> low 00:06:57.909 --> 00:06:57.919 align:start position:0% scandinavia it's clearly very low 00:06:57.919 --> 00:07:01.029 align:start position:0% scandinavia it's clearly very low but<00:06:58.160> it<00:06:58.240> still<00:06:58.560> exists<00:07:00.000> but<00:07:00.160> even<00:07:00.479> places<00:07:00.880> like 00:07:01.029 --> 00:07:01.039 align:start position:0% but it still exists but even places like 00:07:01.039 --> 00:07:03.270 align:start position:0% but it still exists but even places like this<00:07:01.280> are<00:07:01.440> of<00:07:01.599> interest<00:07:01.919> to<00:07:02.080> the<00:07:02.160> world<00:07:02.479> bank 00:07:03.270 --> 00:07:03.280 align:start position:0% this are of interest to the world bank 00:07:03.280 --> 00:07:05.270 align:start position:0% this are of interest to the world bank because<00:07:03.599> if<00:07:03.759> we<00:07:03.919> can<00:07:04.160> look<00:07:04.400> at<00:07:04.560> a<00:07:04.800> range<00:07:05.120> of 00:07:05.270 --> 00:07:05.280 align:start position:0% because if we can look at a range of 00:07:05.280 --> 00:07:07.589 align:start position:0% because if we can look at a range of countries<00:07:06.160> countries<00:07:06.639> where<00:07:06.800> corruption<00:07:07.360> is 00:07:07.589 --> 00:07:07.599 align:start position:0% countries countries where corruption is 00:07:07.599 --> 00:07:08.790 align:start position:0% countries countries where corruption is relatively<00:07:08.160> high 00:07:08.790 --> 00:07:08.800 align:start position:0% relatively high 00:07:08.800 --> 00:07:11.270 align:start position:0% relatively high but<00:07:09.039> also<00:07:09.280> where<00:07:09.520> it's<00:07:09.759> relatively<00:07:10.319> low<00:07:11.120> we 00:07:11.270 --> 00:07:11.280 align:start position:0% but also where it's relatively low we 00:07:11.280 --> 00:07:12.230 align:start position:0% but also where it's relatively low we can<00:07:11.440> have<00:07:11.680> a<00:07:11.840> much 00:07:12.230 --> 00:07:12.240 align:start position:0% can have a much 00:07:12.240 --> 00:07:14.950 align:start position:0% can have a much stronger<00:07:12.880> idea<00:07:13.599> of<00:07:13.759> the<00:07:13.919> link<00:07:14.560> between 00:07:14.950 --> 00:07:14.960 align:start position:0% stronger idea of the link between 00:07:14.960 --> 00:07:17.909 align:start position:0% stronger idea of the link between corruption<00:07:15.840> and<00:07:15.919> the<00:07:16.080> level<00:07:16.319> of<00:07:16.479> investment 00:07:17.909 --> 00:07:17.919 align:start position:0% corruption and the level of investment 00:07:17.919 --> 00:07:21.350 align:start position:0% corruption and the level of investment well<00:07:18.160> i<00:07:18.479> think<00:07:19.039> all<00:07:19.360> kind<00:07:19.599> of<00:07:19.759> corruption<00:07:20.720> is 00:07:21.350 --> 00:07:21.360 align:start position:0% well i think all kind of corruption is 00:07:21.360 --> 00:07:23.990 align:start position:0% well i think all kind of corruption is negative<00:07:21.840> for<00:07:22.000> the<00:07:22.080> society<00:07:23.039> well<00:07:23.280> a<00:07:23.440> society 00:07:23.990 --> 00:07:24.000 align:start position:0% negative for the society well a society 00:07:24.000 --> 00:07:25.589 align:start position:0% negative for the society well a society that<00:07:24.240> says<00:07:24.560> we<00:07:24.720> have<00:07:24.880> no<00:07:25.120> problem<00:07:25.440> with 00:07:25.589 --> 00:07:25.599 align:start position:0% that says we have no problem with 00:07:25.599 --> 00:07:26.309 align:start position:0% that says we have no problem with corruption 00:07:26.309 --> 00:07:26.319 align:start position:0% corruption 00:07:26.319 --> 00:07:29.749 align:start position:0% corruption are<00:07:26.800> truly<00:07:27.520> corrupt 00:07:29.749 --> 00:07:29.759 align:start position:0% are truly corrupt 00:07:29.759 --> 00:07:32.309 align:start position:0% are truly corrupt but<00:07:30.000> what's<00:07:30.400> important<00:07:31.039> is<00:07:31.199> to<00:07:31.360> be<00:07:31.520> aware 00:07:32.309 --> 00:07:32.319 align:start position:0% but what's important is to be aware 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have<00:07:45.919> relatively<00:07:46.479> high<00:07:46.720> levels<00:07:47.039> of 00:07:47.189 --> 00:07:47.199 align:start position:0% have relatively high levels of 00:07:47.199 --> 00:07:49.510 align:start position:0% have relatively high levels of investment<00:07:48.319> so<00:07:48.560> just<00:07:48.800> how<00:07:49.039> much<00:07:49.280> does 00:07:49.510 --> 00:07:49.520 align:start position:0% investment so just how much does 00:07:49.520 --> 00:07:52.070 align:start position:0% investment so just how much does corruption<00:07:50.000> affect<00:07:50.400> society's<00:07:51.039> well-being 00:07:52.070 --> 00:07:52.080 align:start position:0% corruption affect society's well-being 00:07:52.080 --> 00:07:54.469 align:start position:0% corruption affect society's well-being and<00:07:52.240> in<00:07:52.400> particular<00:07:53.280> to<00:07:53.440> what<00:07:53.680> extent<00:07:54.080> does<00:07:54.319> it 00:07:54.469 --> 00:07:54.479 align:start position:0% and in particular to what extent does it 00:07:54.479 --> 00:07:56.830 align:start position:0% and in particular to what extent does it affect<00:07:54.800> the<00:07:54.879> amount<00:07:55.199> of<00:07:55.360> investment<00:07:55.840> in 00:07:56.830 --> 00:07:56.840 align:start position:0% affect the amount of investment in 00:07:56.840 --> 00:07:58.390 align:start position:0% affect the amount of investment in society 00:07:58.390 --> 00:07:58.400 align:start position:0% society 00:07:58.400 --> 00:08:00.230 align:start position:0% society the<00:07:58.560> world<00:07:58.800> bank<00:07:59.120> undertook<00:07:59.599> a<00:07:59.680> regression 00:08:00.230 --> 00:08:00.240 align:start position:0% the world bank undertook a regression 00:08:00.240 --> 00:08:02.550 align:start position:0% the world bank undertook a regression analysis<00:08:00.960> to<00:08:01.199> try<00:08:01.440> to<00:08:01.599> determine<00:08:02.080> the<00:08:02.240> effect 00:08:02.550 --> 00:08:02.560 align:start position:0% analysis to try to determine the effect 00:08:02.560 --> 00:08:04.950 align:start position:0% analysis to try to determine the effect of<00:08:02.639> corruption<00:08:03.280> on<00:08:03.520> investment<00:08:04.160> levels 00:08:04.950 --> 00:08:04.960 align:start position:0% of corruption on investment levels 00:08:04.960 --> 00:08:06.869 align:start position:0% of corruption on investment levels the<00:08:05.120> results<00:08:05.520> of<00:08:05.599> that<00:08:05.840> analysis<00:08:06.720> are 00:08:06.869 --> 00:08:06.879 align:start position:0% the results of that analysis are 00:08:06.879 --> 00:08:09.350 align:start position:0% the results of that analysis are presented<00:08:07.440> in<00:08:07.520> the<00:08:07.680> table 00:08:09.350 --> 00:08:09.360 align:start position:0% presented in the table 00:08:09.360 --> 00:08:11.909 align:start position:0% presented in the table the<00:08:09.520> dependent<00:08:10.080> variable<00:08:10.720> investment<00:08:11.680> is 00:08:11.909 --> 00:08:11.919 align:start position:0% the dependent variable investment is 00:08:11.919 --> 00:08:12.469 align:start position:0% the dependent variable investment is actually 00:08:12.469 --> 00:08:12.479 align:start position:0% actually 00:08:12.479 --> 00:08:15.350 align:start position:0% actually investment<00:08:13.039> divided<00:08:13.520> by<00:08:13.840> gdp<00:08:14.479> gross<00:08:14.800> domestic 00:08:15.350 --> 00:08:15.360 align:start position:0% investment divided by gdp gross domestic 00:08:15.360 --> 00:08:16.150 align:start position:0% investment divided by gdp gross domestic product 00:08:16.150 --> 00:08:16.160 align:start position:0% product 00:08:16.160 --> 00:08:17.990 align:start position:0% product in<00:08:16.319> other<00:08:16.479> words<00:08:17.120> investment<00:08:17.759> is<00:08:17.840> a 00:08:17.990 --> 00:08:18.000 align:start position:0% in other words investment is a 00:08:18.000 --> 00:08:19.830 align:start position:0% in other words investment is a proportion<00:08:18.560> of<00:08:18.720> output 00:08:19.830 --> 00:08:19.840 align:start position:0% proportion of output 00:08:19.840 --> 00:08:21.909 align:start position:0% proportion of output although<00:08:20.160> for<00:08:20.319> simplicity<00:08:21.120> we'll<00:08:21.360> now<00:08:21.520> refer 00:08:21.909 --> 00:08:21.919 align:start position:0% although for simplicity we'll now refer 00:08:21.919 --> 00:08:23.029 align:start position:0% although for simplicity we'll now refer to<00:08:22.080> it<00:08:22.240> just<00:08:22.479> as 00:08:23.029 --> 00:08:23.039 align:start position:0% to it just as 00:08:23.039 --> 00:08:27.189 align:start position:0% to it just as investment<00:08:24.879> of<00:08:25.039> the<00:08:25.199> independent<00:08:25.840> variables 00:08:27.189 --> 00:08:27.199 align:start position:0% investment of the independent variables 00:08:27.199 --> 00:08:29.270 align:start position:0% investment of the independent variables the<00:08:27.440> level<00:08:27.759> of<00:08:27.840> corruption<00:08:28.479> is<00:08:28.639> based<00:08:29.039> on 00:08:29.270 --> 00:08:29.280 align:start position:0% the level of corruption is based on 00:08:29.280 --> 00:08:30.869 align:start position:0% the level of corruption is based on surveys<00:08:29.919> of<00:08:30.080> businesses 00:08:30.869 --> 00:08:30.879 align:start position:0% surveys of businesses 00:08:30.879 --> 00:08:33.269 align:start position:0% surveys of businesses that<00:08:31.120> deal<00:08:31.440> in<00:08:31.520> the<00:08:31.759> 39<00:08:32.320> countries<00:08:32.880> the<00:08:32.959> world 00:08:33.269 --> 00:08:33.279 align:start position:0% that deal in the 39 countries the world 00:08:33.279 --> 00:08:35.350 align:start position:0% that deal in the 39 countries the world bank<00:08:33.519> study<00:08:33.919> looked<00:08:34.240> at 00:08:35.350 --> 00:08:35.360 align:start position:0% bank study looked at 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initial<00:08:45.760> gdp<00:08:46.399> per<00:08:46.640> capita<00:08:47.279> is<00:08:47.519> the<00:08:47.680> initial 00:08:48.070 --> 00:08:48.080 align:start position:0% initial gdp per capita is the initial 00:08:48.080 --> 00:08:49.829 align:start position:0% initial gdp per capita is the initial output<00:08:48.480> per<00:08:48.720> head<00:08:48.959> at<00:08:49.040> the<00:08:49.200> beginning<00:08:49.600> of<00:08:49.680> the 00:08:49.829 --> 00:08:49.839 align:start position:0% output per head at the beginning of the 00:08:49.839 --> 00:08:51.590 align:start position:0% output per head at the beginning of the period<00:08:50.320> studied 00:08:51.590 --> 00:08:51.600 align:start position:0% period studied 00:08:51.600 --> 00:08:54.389 align:start position:0% period studied policy<00:08:52.160> distortion<00:08:53.120> is<00:08:53.279> a<00:08:53.440> measure<00:08:53.839> of<00:08:54.000> how 00:08:54.389 --> 00:08:54.399 align:start position:0% policy distortion is a measure of how 00:08:54.399 --> 00:08:58.870 align:start position:0% policy distortion is a measure of how badly<00:08:54.959> economic<00:08:55.600> policy<00:08:56.080> is<00:08:56.240> conducted 00:08:58.870 --> 00:08:58.880 align:start position:0% badly economic policy is conducted 00:08:58.880 --> 00:09:01.030 align:start position:0% badly economic policy is conducted the<00:08:59.040> numbers<00:08:59.360> in<00:08:59.440> the<00:08:59.600> parentheses<00:09:00.800> are<00:09:00.880> the 00:09:01.030 --> 00:09:01.040 align:start position:0% the numbers in the parentheses are the 00:09:01.040 --> 00:09:01.990 align:start position:0% the numbers in the parentheses are the standard<00:09:01.519> errors 00:09:01.990 --> 00:09:02.000 align:start position:0% standard errors 00:09:02.000 --> 00:09:03.829 align:start position:0% standard errors associated<00:09:02.720> with<00:09:02.959> each<00:09:03.120> of<00:09:03.200> the<00:09:03.360> regression 00:09:03.829 --> 00:09:03.839 align:start position:0% associated with each of the regression 00:09:03.839 --> 00:09:05.750 align:start position:0% associated with each of the regression coefficients 00:09:05.750 --> 00:09:05.760 align:start position:0% coefficients 00:09:05.760 --> 00:09:07.590 align:start position:0% coefficients so<00:09:05.920> what<00:09:06.080> does<00:09:06.240> all<00:09:06.399> this<00:09:06.640> information<00:09:07.360> tell 00:09:07.590 --> 00:09:07.600 align:start position:0% so what does all this information tell 00:09:07.600 --> 00:09:10.710 align:start position:0% so what does all this information tell us 00:09:10.710 --> 00:09:10.720 align:start position:0% 00:09:10.720 --> 00:09:13.110 align:start position:0% estimation<00:09:11.440> is<00:09:11.760> by<00:09:12.000> the<00:09:12.160> ordinary<00:09:12.720> least 00:09:13.110 --> 00:09:13.120 align:start position:0% estimation is by the ordinary least 00:09:13.120 --> 00:09:14.790 align:start position:0% estimation is by the ordinary least squares<00:09:13.680> method 00:09:14.790 --> 00:09:14.800 align:start position:0% squares method 00:09:14.800 --> 00:09:17.430 align:start position:0% squares method so<00:09:15.200> the<00:09:15.360> regression<00:09:16.320> won't<00:09:16.640> pick<00:09:16.959> up<00:09:17.200> any 00:09:17.430 --> 00:09:17.440 align:start position:0% so the regression won't pick up any 00:09:17.440 --> 00:09:19.430 align:start position:0% so the regression won't pick up any relationships<00:09:18.240> that<00:09:18.399> are<00:09:18.560> there 00:09:19.430 --> 00:09:19.440 align:start position:0% relationships that are there 00:09:19.440 --> 00:09:22.550 align:start position:0% relationships that are there that<00:09:19.680> are<00:09:19.920> not<00:09:20.839> linear 00:09:22.550 --> 00:09:22.560 align:start position:0% that are not linear 00:09:22.560 --> 00:09:25.190 align:start position:0% that are not linear now<00:09:23.040> first<00:09:23.839> let's<00:09:24.080> look<00:09:24.240> at<00:09:24.399> the<00:09:24.560> signs<00:09:25.040> for 00:09:25.190 --> 00:09:25.200 align:start position:0% now first let's look at the signs for 00:09:25.200 --> 00:09:28.630 align:start position:0% now first let's look at the signs for the<00:09:25.360> coefficients 00:09:28.630 --> 00:09:28.640 align:start position:0% 00:09:28.640 --> 00:09:30.630 align:start position:0% as<00:09:28.800> we've<00:09:29.040> explained<00:09:30.080> we<00:09:30.240> would<00:09:30.480> have 00:09:30.630 --> 00:09:30.640 align:start position:0% as we've explained we would have 00:09:30.640 --> 00:09:32.470 align:start position:0% as we've explained we would have anticipated<00:09:31.519> that<00:09:31.760> corruption 00:09:32.470 --> 00:09:32.480 align:start position:0% anticipated that corruption 00:09:32.480 --> 00:09:34.630 align:start position:0% anticipated that corruption harms<00:09:32.959> investment<00:09:33.920> the<00:09:34.080> greater<00:09:34.480> the 00:09:34.630 --> 00:09:34.640 align:start position:0% harms investment the greater the 00:09:34.640 --> 00:09:36.470 align:start position:0% harms investment the greater the corruption<00:09:35.440> the<00:09:35.600> lower<00:09:35.920> the<00:09:36.000> level<00:09:36.320> of 00:09:36.470 --> 00:09:36.480 align:start position:0% corruption the lower the level of 00:09:36.480 --> 00:09:37.430 align:start position:0% corruption the lower the level of investment 00:09:37.430 --> 00:09:37.440 align:start position:0% investment 00:09:37.440 --> 00:09:39.269 align:start position:0% investment so<00:09:37.600> we<00:09:37.760> would<00:09:38.000> expect<00:09:38.320> the<00:09:38.480> coefficient<00:09:39.120> to 00:09:39.269 --> 00:09:39.279 align:start position:0% so we would expect the coefficient to 00:09:39.279 --> 00:09:41.269 align:start position:0% so we would expect the coefficient to have<00:09:39.519> a<00:09:39.600> minus<00:09:40.080> sign 00:09:41.269 --> 00:09:41.279 align:start position:0% have a minus sign 00:09:41.279 --> 00:09:44.710 align:start position:0% have a minus sign and<00:09:41.519> it<00:09:41.680> does 00:09:44.710 --> 00:09:44.720 align:start position:0% 00:09:44.720 --> 00:09:47.030 align:start position:0% the<00:09:44.880> next<00:09:45.120> variable<00:09:45.680> is<00:09:45.839> the<00:09:46.080> predictability 00:09:47.030 --> 00:09:47.040 align:start position:0% the next variable is the predictability 00:09:47.040 --> 00:09:48.310 align:start position:0% the next variable is the predictability of<00:09:47.200> corruption 00:09:48.310 --> 00:09:48.320 align:start position:0% of corruption 00:09:48.320 --> 00:09:50.070 align:start position:0% of corruption where<00:09:48.480> the<00:09:48.640> coefficient<00:09:49.200> has<00:09:49.440> a<00:09:49.600> positive 00:09:50.070 --> 00:09:50.080 align:start position:0% where the coefficient has a positive 00:09:50.080 --> 00:09:51.509 align:start position:0% where the coefficient has a positive sign 00:09:51.509 --> 00:09:51.519 align:start position:0% sign 00:09:51.519 --> 00:09:54.070 align:start position:0% sign all<00:09:51.839> other<00:09:52.000> things<00:09:52.320> being<00:09:52.640> equal<00:09:53.519> the<00:09:53.760> more 00:09:54.070 --> 00:09:54.080 align:start position:0% all other things being equal the more 00:09:54.080 --> 00:09:56.389 align:start position:0% all other things being equal the more predictable<00:09:54.800> the<00:09:54.959> corruption 00:09:56.389 --> 00:09:56.399 align:start position:0% predictable the corruption 00:09:56.399 --> 00:10:00.470 align:start position:0% predictable the corruption the<00:09:56.640> greater<00:09:57.120> the<00:09:57.279> investment 00:10:00.470 --> 00:10:00.480 align:start position:0% 00:10:00.480 --> 00:10:02.790 align:start position:0% you<00:10:00.640> may<00:10:00.800> have<00:10:00.880> been<00:10:01.120> surprised<00:10:02.480> by<00:10:02.720> the 00:10:02.790 --> 00:10:02.800 align:start position:0% you may have been surprised by the 00:10:02.800 --> 00:10:04.230 align:start position:0% you may have been surprised by the result<00:10:03.279> we<00:10:03.440> got<00:10:03.680> for<00:10:03.839> the 00:10:04.230 --> 00:10:04.240 align:start position:0% result we got for the 00:10:04.240 --> 00:10:06.949 align:start position:0% result we got for the predictability<00:10:05.200> of<00:10:05.360> corruption<00:10:06.720> but 00:10:06.949 --> 00:10:06.959 align:start position:0% predictability of corruption but 00:10:06.959 --> 00:10:09.030 align:start position:0% predictability of corruption but actually<00:10:07.279> if<00:10:07.360> you<00:10:07.519> think<00:10:07.760> about<00:10:08.000> it<00:10:08.240> carefully 00:10:09.030 --> 00:10:09.040 align:start position:0% actually if you think about it carefully 00:10:09.040 --> 00:10:11.509 align:start position:0% actually if you think about it carefully it<00:10:09.279> becomes<00:10:09.760> fairly<00:10:10.079> clear<00:10:10.720> imagine<00:10:11.279> two 00:10:11.509 --> 00:10:11.519 align:start position:0% it becomes fairly clear imagine two 00:10:11.519 --> 00:10:12.230 align:start position:0% it becomes fairly clear imagine two countries 00:10:12.230 --> 00:10:12.240 align:start position:0% countries 00:10:12.240 --> 00:10:14.790 align:start position:0% countries each<00:10:12.560> with<00:10:12.720> the<00:10:12.880> same<00:10:13.279> level<00:10:13.600> of<00:10:13.680> corruption 00:10:14.790 --> 00:10:14.800 align:start position:0% each with the same level of corruption 00:10:14.800 --> 00:10:16.389 align:start position:0% each with the same level of corruption but<00:10:15.040> in<00:10:15.200> one<00:10:15.519> country 00:10:16.389 --> 00:10:16.399 align:start position:0% but in one country 00:10:16.399 --> 00:10:19.590 align:start position:0% but in one country it's<00:10:16.640> more<00:10:17.040> predictable<00:10:18.800> then<00:10:19.040> they're<00:10:19.279> more 00:10:19.590 --> 00:10:19.600 align:start position:0% it's more predictable then they're more 00:10:19.600 --> 00:10:21.269 align:start position:0% it's more predictable then they're more likely<00:10:20.079> to<00:10:20.240> get<00:10:20.480> investment 00:10:21.269 --> 00:10:21.279 align:start position:0% likely to get investment 00:10:21.279 --> 00:10:24.230 align:start position:0% likely to get investment in<00:10:21.440> that<00:10:21.760> country<00:10:22.480> because<00:10:23.760> one<00:10:24.000> of<00:10:24.079> the 00:10:24.230 --> 00:10:24.240 align:start position:0% in that country because one of the 00:10:24.240 --> 00:10:24.790 align:start position:0% in that country because one of the things<00:10:24.480> that 00:10:24.790 --> 00:10:24.800 align:start position:0% things that 00:10:24.800 --> 00:10:28.550 align:start position:0% things that businessmen<00:10:25.519> hate<00:10:26.399> is<00:10:26.839> uncertainty 00:10:28.550 --> 00:10:28.560 align:start position:0% businessmen hate is uncertainty 00:10:28.560 --> 00:10:31.509 align:start position:0% businessmen hate is uncertainty if<00:10:28.720> you<00:10:28.959> have<00:10:29.680> a<00:10:30.000> stable<00:10:30.480> level<00:10:30.800> of<00:10:30.959> corruption 00:10:31.509 --> 00:10:31.519 align:start position:0% if you have a stable level of corruption 00:10:31.519 --> 00:10:33.190 align:start position:0% if you have a stable level of corruption at<00:10:31.680> a<00:10:31.839> very<00:10:32.160> high<00:10:32.399> level 00:10:33.190 --> 00:10:33.200 align:start position:0% at a very high level 00:10:33.200 --> 00:10:35.430 align:start position:0% at a very high level i<00:10:33.279> know<00:10:33.440> what<00:10:33.600> i'm<00:10:33.760> playing<00:10:34.079> with<00:10:34.959> if<00:10:35.120> i<00:10:35.200> have<00:10:35.360> a 00:10:35.430 --> 00:10:35.440 align:start position:0% i know what i'm playing with if i have a 00:10:35.440 --> 00:10:37.190 align:start position:0% i know what i'm playing with if i have a very<00:10:35.760> stable<00:10:36.240> level<00:10:36.480> of<00:10:36.640> corruption<00:10:37.040> at<00:10:37.200> a 00:10:37.190 --> 00:10:37.200 align:start position:0% very stable level of corruption at a 00:10:37.200 --> 00:10:38.389 align:start position:0% very stable level of corruption at a very<00:10:37.519> low<00:10:37.760> level 00:10:38.389 --> 00:10:38.399 align:start position:0% very low level 00:10:38.399 --> 00:10:40.150 align:start position:0% very low level i<00:10:38.560> also<00:10:38.800> know<00:10:38.959> what<00:10:39.120> i'm<00:10:39.279> playing<00:10:39.440> with<00:10:40.000> we 00:10:40.150 --> 00:10:40.160 align:start position:0% i also know what i'm playing with we 00:10:40.160 --> 00:10:41.910 align:start position:0% i also know what i'm playing with we want<00:10:40.560> stability<00:10:41.120> why<00:10:41.360> it<00:10:41.440> gives<00:10:41.680> us 00:10:41.910 --> 00:10:41.920 align:start position:0% want stability why it gives us 00:10:41.920 --> 00:10:43.430 align:start position:0% want stability why it gives us predictability 00:10:43.430 --> 00:10:43.440 align:start position:0% predictability 00:10:43.440 --> 00:10:46.150 align:start position:0% predictability corruption<00:10:44.079> practice<00:10:44.720> or<00:10:45.200> any<00:10:45.519> practice<00:10:46.000> that 00:10:46.150 --> 00:10:46.160 align:start position:0% corruption practice or any practice that 00:10:46.160 --> 00:10:48.230 align:start position:0% corruption practice or any practice that can<00:10:46.320> be<00:10:46.480> considered<00:10:47.040> as<00:10:47.200> corrupted 00:10:48.230 --> 00:10:48.240 align:start position:0% can be considered as corrupted 00:10:48.240 --> 00:10:51.750 align:start position:0% can be considered as corrupted it<00:10:48.480> is<00:10:49.120> part<00:10:49.680> of<00:10:50.240> the<00:10:50.560> informal 00:10:51.750 --> 00:10:51.760 align:start position:0% it is part of the informal 00:10:51.760 --> 00:10:55.590 align:start position:0% it is part of the informal business<00:10:52.240> plan<00:10:52.720> of<00:10:53.920> multinational<00:10:54.800> or 00:10:55.590 --> 00:10:55.600 align:start position:0% business plan of multinational or 00:10:55.600 --> 00:10:57.670 align:start position:0% business plan of multinational or international<00:10:56.480> company<00:10:57.120> or<00:10:57.279> a<00:10:57.360> small 00:10:57.670 --> 00:10:57.680 align:start position:0% international company or a small 00:10:57.680 --> 00:10:58.870 align:start position:0% international company or a small immediate<00:10:58.079> enterprise 00:10:58.870 --> 00:10:58.880 align:start position:0% immediate enterprise 00:10:58.880 --> 00:11:02.069 align:start position:0% immediate enterprise that<00:10:59.519> operates<00:11:00.160> here<00:11:01.120> so<00:11:01.279> if<00:11:01.360> they<00:11:01.600> don't<00:11:01.839> have 00:11:02.069 --> 00:11:02.079 align:start position:0% that operates here so if they don't have 00:11:02.079 --> 00:11:03.110 align:start position:0% that operates here so if they don't have a<00:11:02.240> problem 00:11:03.110 --> 00:11:03.120 align:start position:0% a problem 00:11:03.120 --> 00:11:06.230 align:start position:0% a problem about<00:11:03.519> the<00:11:03.959> uncertainty<00:11:05.279> with<00:11:05.519> regard<00:11:05.920> to<00:11:06.079> the 00:11:06.230 --> 00:11:06.240 align:start position:0% about the uncertainty with regard to the 00:11:06.240 --> 00:11:07.590 align:start position:0% about the uncertainty with regard to the level<00:11:06.480> of<00:11:06.560> corruption 00:11:07.590 --> 00:11:07.600 align:start position:0% level of corruption 00:11:07.600 --> 00:11:09.590 align:start position:0% level of corruption they're<00:11:07.920> more<00:11:08.320> likely<00:11:08.720> to<00:11:08.959> invest<00:11:09.279> in<00:11:09.360> that 00:11:09.590 --> 00:11:09.600 align:start position:0% they're more likely to invest in that 00:11:09.600 --> 00:11:12.949 align:start position:0% they're more likely to invest in that economy 00:11:12.949 --> 00:11:12.959 align:start position:0% 00:11:12.959 --> 00:11:14.389 align:start position:0% higher<00:11:13.279> levels<00:11:13.600> of<00:11:13.680> secondary<00:11:14.160> school 00:11:14.389 --> 00:11:14.399 align:start position:0% higher levels of secondary school 00:11:14.399 --> 00:11:16.710 align:start position:0% higher levels of secondary school enrollment<00:11:14.959> suggest<00:11:15.440> a<00:11:15.519> better<00:11:15.920> educated 00:11:16.710 --> 00:11:16.720 align:start position:0% enrollment suggest a better educated 00:11:16.720 --> 00:11:17.829 align:start position:0% enrollment suggest a better educated workforce 00:11:17.829 --> 00:11:17.839 align:start position:0% workforce 00:11:17.839 --> 00:11:20.550 align:start position:0% workforce so<00:11:18.160> more<00:11:18.399> attractive<00:11:18.959> to<00:11:19.200> investors 00:11:20.550 --> 00:11:20.560 align:start position:0% so more attractive to investors 00:11:20.560 --> 00:11:21.670 align:start position:0% so more attractive to investors therefore<00:11:20.959> we<00:11:21.040> would<00:11:21.200> expect<00:11:21.600> the 00:11:21.670 --> 00:11:21.680 align:start position:0% therefore we would expect the 00:11:21.680 --> 00:11:23.670 align:start position:0% therefore we would expect the coefficient<00:11:22.320> to<00:11:22.399> be<00:11:22.560> positive 00:11:23.670 --> 00:11:23.680 align:start position:0% coefficient to be positive 00:11:23.680 --> 00:11:27.269 align:start position:0% coefficient to be positive and<00:11:23.920> it<00:11:24.079> is<00:11:26.399> now<00:11:26.640> consider 00:11:27.269 --> 00:11:27.279 align:start position:0% and it is now consider 00:11:27.279 --> 00:11:30.949 align:start position:0% and it is now consider initial<00:11:27.680> gdp<00:11:28.240> per<00:11:28.480> capita<00:11:29.920> we<00:11:30.079> would<00:11:30.320> expect 00:11:30.949 --> 00:11:30.959 align:start position:0% initial gdp per capita we would expect 00:11:30.959 --> 00:11:33.030 align:start position:0% initial gdp per capita we would expect that<00:11:31.200> if<00:11:31.360> initial<00:11:31.760> output<00:11:32.160> per<00:11:32.320> head<00:11:32.560> is<00:11:32.800> low 00:11:33.030 --> 00:11:33.040 align:start position:0% that if initial output per head is low 00:11:33.040 --> 00:11:35.030 align:start position:0% that if initial output per head is low at<00:11:33.200> the<00:11:33.279> beginning<00:11:33.680> of<00:11:33.760> the<00:11:33.920> period<00:11:34.399> studied 00:11:35.030 --> 00:11:35.040 align:start position:0% at the beginning of the period studied 00:11:35.040 --> 00:11:37.110 align:start position:0% at the beginning of the period studied there's<00:11:35.279> more<00:11:35.519> potential<00:11:36.320> for<00:11:36.560> profitable 00:11:37.110 --> 00:11:37.120 align:start position:0% there's more potential for profitable 00:11:37.120 --> 00:11:38.069 align:start position:0% there's more potential for profitable investment 00:11:38.069 --> 00:11:38.079 align:start position:0% investment 00:11:38.079 --> 00:11:40.710 align:start position:0% investment so<00:11:38.240> the<00:11:38.480> minus<00:11:38.959> sign<00:11:39.200> of<00:11:39.279> the<00:11:39.440> coefficient<00:11:40.560> is 00:11:40.710 --> 00:11:40.720 align:start position:0% so the minus sign of the coefficient is 00:11:40.720 --> 00:11:43.670 align:start position:0% so the minus sign of the coefficient is an<00:11:40.880> expected<00:11:41.440> one 00:11:43.670 --> 00:11:43.680 align:start position:0% an expected one 00:11:43.680 --> 00:11:45.430 align:start position:0% an expected one finally<00:11:44.000> we<00:11:44.160> would<00:11:44.320> expect<00:11:44.720> that<00:11:44.880> the<00:11:45.040> greater 00:11:45.430 --> 00:11:45.440 align:start position:0% finally we would expect that the greater 00:11:45.440 --> 00:11:47.190 align:start position:0% finally we would expect that the greater the<00:11:45.839> policy<00:11:46.399> distortion 00:11:47.190 --> 00:11:47.200 align:start position:0% the policy distortion 00:11:47.200 --> 00:11:49.829 align:start position:0% the policy distortion that<00:11:47.440> is<00:11:48.000> the<00:11:48.240> worst<00:11:48.640> the<00:11:48.800> economic<00:11:49.440> policy 00:11:49.829 --> 00:11:49.839 align:start position:0% that is the worst the economic policy 00:11:49.839 --> 00:11:51.590 align:start position:0% that is the worst the economic policy that's<00:11:50.160> being<00:11:50.399> conducted 00:11:51.590 --> 00:11:51.600 align:start position:0% that's being conducted 00:11:51.600 --> 00:11:54.310 align:start position:0% that's being conducted the<00:11:51.760> less<00:11:52.000> keen<00:11:52.320> investors<00:11:52.880> will<00:11:53.120> be<00:11:53.920> we<00:11:54.079> would 00:11:54.310 --> 00:11:54.320 align:start position:0% the less keen investors will be we would 00:11:54.320 --> 00:11:56.710 align:start position:0% the less keen investors will be we would expect<00:11:54.800> a<00:11:55.040> negative<00:11:55.440> coefficient 00:11:56.710 --> 00:11:56.720 align:start position:0% expect a negative coefficient 00:11:56.720 --> 00:12:00.550 align:start position:0% expect a negative coefficient and<00:11:56.959> it<00:11:57.120> is<00:11:57.279> so<00:11:59.519> we<00:11:59.760> often<00:12:00.000> learn<00:12:00.240> something 00:12:00.550 --> 00:12:00.560 align:start position:0% and it is so we often learn something 00:12:00.560 --> 00:12:01.990 align:start position:0% and it is so we often learn something about<00:12:00.800> the<00:12:00.959> relationship<00:12:01.519> between<00:12:01.839> the 00:12:01.990 --> 00:12:02.000 align:start position:0% about the relationship between the 00:12:02.000 --> 00:12:04.870 align:start position:0% about the relationship between the dependent<00:12:02.720> and<00:12:02.800> the<00:12:03.040> independent<00:12:03.760> variables 00:12:04.870 --> 00:12:04.880 align:start position:0% dependent and the independent variables 00:12:04.880 --> 00:12:06.550 align:start position:0% dependent and the independent variables by<00:12:05.120> looking<00:12:05.440> at<00:12:05.519> the<00:12:05.760> magnitude<00:12:06.320> of<00:12:06.480> the 00:12:06.550 --> 00:12:06.560 align:start position:0% by looking at the magnitude of the 00:12:06.560 --> 00:12:08.069 align:start position:0% by looking at the magnitude of the coefficients 00:12:08.069 --> 00:12:08.079 align:start position:0% coefficients 00:12:08.079 --> 00:12:10.550 align:start position:0% coefficients we<00:12:08.240> can<00:12:08.399> see<00:12:08.880> how<00:12:09.200> much<00:12:09.519> a<00:12:09.760> change<00:12:10.240> in<00:12:10.399> an 00:12:10.550 --> 00:12:10.560 align:start position:0% we can see how much a change in an 00:12:10.560 --> 00:12:12.069 align:start position:0% we can see how much a change in an independent<00:12:11.200> variable 00:12:12.069 --> 00:12:12.079 align:start position:0% independent variable 00:12:12.079 --> 00:12:15.190 align:start position:0% independent variable affects<00:12:12.480> the<00:12:12.639> dependent<00:12:13.200> variable 00:12:15.190 --> 00:12:15.200 align:start position:0% affects the dependent variable 00:12:15.200 --> 00:12:17.829 align:start position:0% affects the dependent variable but<00:12:15.440> the<00:12:15.600> report<00:12:16.399> doesn't<00:12:16.880> tell<00:12:17.120> us<00:12:17.279> the<00:12:17.440> units 00:12:17.829 --> 00:12:17.839 align:start position:0% but the report doesn't tell us the units 00:12:17.839 --> 00:12:19.590 align:start position:0% but the report doesn't tell us the units of<00:12:18.000> measurement 00:12:19.590 --> 00:12:19.600 align:start position:0% of measurement 00:12:19.600 --> 00:12:21.829 align:start position:0% of measurement so<00:12:19.839> here<00:12:20.320> we've<00:12:20.560> only<00:12:20.800> been<00:12:21.040> able<00:12:21.279> to<00:12:21.440> comment 00:12:21.829 --> 00:12:21.839 align:start position:0% so here we've only been able to comment 00:12:21.839 --> 00:12:25.110 align:start position:0% so here we've only been able to comment on<00:12:21.920> the<00:12:22.160> signs<00:12:22.720> of<00:12:22.800> the<00:12:22.959> coefficients 00:12:25.110 --> 00:12:25.120 align:start position:0% on the signs of the coefficients 00:12:25.120 --> 00:12:28.150 align:start position:0% on the signs of the coefficients now<00:12:25.279> to<00:12:25.360> enter<00:12:25.680> the<00:12:25.839> term<00:12:26.399> r<00:12:26.720> squared<00:12:27.760> this<00:12:28.000> is 00:12:28.150 --> 00:12:28.160 align:start position:0% now to enter the term r squared this is 00:12:28.160 --> 00:12:29.590 align:start position:0% now to enter the term r squared this is often<00:12:28.480> called<00:12:28.720> the<00:12:28.880> coefficient<00:12:29.519> of 00:12:29.590 --> 00:12:29.600 align:start position:0% often called the coefficient of 00:12:29.600 --> 00:12:31.030 align:start position:0% often called the coefficient of determination 00:12:31.030 --> 00:12:31.040 align:start position:0% determination 00:12:31.040 --> 00:12:32.629 align:start position:0% determination it<00:12:31.200> tells<00:12:31.519> us<00:12:31.680> the<00:12:31.839> percentage<00:12:32.399> of<00:12:32.480> the 00:12:32.629 --> 00:12:32.639 align:start position:0% it tells us the percentage of the 00:12:32.639 --> 00:12:35.190 align:start position:0% it tells us the percentage of the variations<00:12:33.440> in<00:12:33.519> the<00:12:33.680> dependent<00:12:34.240> variable 00:12:35.190 --> 00:12:35.200 align:start position:0% variations in the dependent variable 00:12:35.200 --> 00:12:37.269 align:start position:0% variations in the dependent variable that<00:12:35.360> can<00:12:35.519> be<00:12:35.680> explained<00:12:36.160> by<00:12:36.480> variations<00:12:37.200> in 00:12:37.269 --> 00:12:37.279 align:start position:0% that can be explained by variations in 00:12:37.279 --> 00:12:39.110 align:start position:0% that can be explained by variations in the<00:12:37.440> independent<00:12:38.079> variables 00:12:39.110 --> 00:12:39.120 align:start position:0% the independent variables 00:12:39.120 --> 00:12:42.870 align:start position:0% the independent variables here<00:12:40.160> 24<00:12:41.120> of<00:12:41.200> the<00:12:41.360> variations<00:12:42.160> in<00:12:42.320> investment 00:12:42.870 --> 00:12:42.880 align:start position:0% here 24 of the variations in investment 00:12:42.880 --> 00:12:44.710 align:start position:0% here 24 of the variations in investment as<00:12:43.040> a<00:12:43.120> proportion<00:12:43.680> of<00:12:43.760> gdp 00:12:44.710 --> 00:12:44.720 align:start position:0% as a proportion of gdp 00:12:44.720 --> 00:12:47.750 align:start position:0% as a proportion of gdp in<00:12:44.880> these<00:12:45.200> 39<00:12:45.839> countries<00:12:46.720> can<00:12:46.959> be<00:12:47.200> explained 00:12:47.750 --> 00:12:47.760 align:start position:0% in these 39 countries can be explained 00:12:47.760 --> 00:12:48.069 align:start position:0% in these 39 countries can be explained by 00:12:48.069 --> 00:12:48.079 align:start position:0% by 00:12:48.079 --> 00:12:50.389 align:start position:0% by variations<00:12:49.200> in<00:12:49.360> the<00:12:49.600> items<00:12:50.000> that<00:12:50.160> we've 00:12:50.389 --> 00:12:50.399 align:start position:0% variations in the items that we've 00:12:50.399 --> 00:12:53.829 align:start position:0% variations in the items that we've mentioned<00:12:50.839> above 00:12:53.829 --> 00:12:53.839 align:start position:0% mentioned above 00:12:53.839 --> 00:12:55.350 align:start position:0% mentioned above now<00:12:54.000> we<00:12:54.079> need<00:12:54.240> to<00:12:54.320> focus<00:12:54.639> on<00:12:54.800> the<00:12:54.880> numbers<00:12:55.279> in 00:12:55.350 --> 00:12:55.360 align:start position:0% now we need to focus on the numbers in 00:12:55.360 --> 00:12:58.069 align:start position:0% now we need to focus on the numbers in parentheses<00:12:56.079> the<00:12:56.480> standard<00:12:57.120> errors 00:12:58.069 --> 00:12:58.079 align:start position:0% parentheses the standard errors 00:12:58.079 --> 00:13:00.150 align:start position:0% parentheses the standard errors associated<00:12:58.800> with<00:12:58.959> each<00:12:59.200> of<00:12:59.279> the<00:12:59.440> explanatory 00:13:00.150 --> 00:13:00.160 align:start position:0% associated with each of the explanatory 00:13:00.160 --> 00:13:01.750 align:start position:0% associated with each of the explanatory variables 00:13:01.750 --> 00:13:01.760 align:start position:0% variables 00:13:01.760 --> 00:13:03.829 align:start position:0% variables these<00:13:02.000> enable<00:13:02.399> us<00:13:02.560> to<00:13:02.639> see<00:13:02.880> how<00:13:03.040> much<00:13:03.360> trust<00:13:03.680> we 00:13:03.829 --> 00:13:03.839 align:start position:0% these enable us to see how much trust we 00:13:03.839 --> 00:13:06.870 align:start position:0% these enable us to see how much trust we can<00:13:04.000> put<00:13:04.240> in<00:13:04.320> the<00:13:04.480> size<00:13:04.800> of<00:13:04.880> the<00:13:04.959> coefficients 00:13:06.870 --> 00:13:06.880 align:start position:0% can put in the size of the coefficients 00:13:06.880 --> 00:13:08.470 align:start position:0% can put in the size of the coefficients let's<00:13:07.120> see<00:13:07.279> how<00:13:07.440> that<00:13:07.680> works<00:13:08.000> for<00:13:08.160> the<00:13:08.240> level 00:13:08.470 --> 00:13:08.480 align:start position:0% let's see how that works for the level 00:13:08.480 --> 00:13:09.910 align:start position:0% let's see how that works for the level of<00:13:08.639> corruption 00:13:09.910 --> 00:13:09.920 align:start position:0% of corruption 00:13:09.920 --> 00:13:13.590 align:start position:0% of corruption step<00:13:10.320> one<00:13:11.200> is<00:13:11.279> to<00:13:11.440> produce<00:13:11.839> a<00:13:12.240> t<00:13:12.480> statistic 00:13:13.590 --> 00:13:13.600 align:start position:0% step one is to produce a t statistic 00:13:13.600 --> 00:13:15.829 align:start position:0% step one is to produce a t statistic we<00:13:13.760> do<00:13:13.920> this<00:13:14.160> by<00:13:14.320> dividing<00:13:14.800> the<00:13:14.959> coefficient 00:13:15.829 --> 00:13:15.839 align:start position:0% we do this by dividing the coefficient 00:13:15.839 --> 00:13:17.350 align:start position:0% we do this by dividing the coefficient by<00:13:16.000> the<00:13:16.160> standard<00:13:16.560> error 00:13:17.350 --> 00:13:17.360 align:start position:0% by the standard error 00:13:17.360 --> 00:13:21.190 align:start position:0% by the standard error so<00:13:17.600> to<00:13:17.760> two<00:13:18.000> decimal<00:13:18.399> places<00:13:19.600> 5.8 00:13:21.190 --> 00:13:21.200 align:start position:0% so to two decimal places 5.8 00:13:21.200 --> 00:13:25.190 align:start position:0% so to two decimal places 5.8 divided<00:13:21.680> by<00:13:21.920> 2.2<00:13:23.519> gives<00:13:23.839> a<00:13:23.920> t<00:13:24.160> statistic 00:13:25.190 --> 00:13:25.200 align:start position:0% divided by 2.2 gives a t statistic 00:13:25.200 --> 00:13:28.629 align:start position:0% divided by 2.2 gives a t statistic of<00:13:25.399> 2.64<00:13:27.279> step<00:13:27.680> two 00:13:28.629 --> 00:13:28.639 align:start position:0% of 2.64 step two 00:13:28.639 --> 00:13:29.990 align:start position:0% of 2.64 step two is<00:13:28.800> to<00:13:28.959> decide<00:13:29.360> on<00:13:29.519> the<00:13:29.600> level<00:13:29.839> of 00:13:29.990 --> 00:13:30.000 align:start position:0% is to decide on the level of 00:13:30.000 --> 00:13:32.710 align:start position:0% is to decide on the level of significance<00:13:31.600> we'll<00:13:31.920> use 00:13:32.710 --> 00:13:32.720 align:start position:0% significance we'll use 00:13:32.720 --> 00:13:34.870 align:start position:0% significance we'll use five<00:13:32.959> percent<00:13:34.000> that's<00:13:34.320> not<00:13:34.480> the<00:13:34.639> only 00:13:34.870 --> 00:13:34.880 align:start position:0% five percent that's not the only 00:13:34.880 --> 00:13:36.150 align:start position:0% five percent that's not the only possible<00:13:35.440> choice 00:13:36.150 --> 00:13:36.160 align:start position:0% possible choice 00:13:36.160 --> 00:13:39.269 align:start position:0% possible choice but<00:13:36.399> it<00:13:36.560> is<00:13:36.720> the<00:13:36.800> most<00:13:37.120> common<00:13:37.440> one 00:13:39.269 --> 00:13:39.279 align:start position:0% but it is the most common one 00:13:39.279 --> 00:13:41.750 align:start position:0% but it is the most common one step<00:13:39.600> three<00:13:40.480> is<00:13:40.639> to<00:13:40.800> work<00:13:41.120> out<00:13:41.279> how<00:13:41.440> many 00:13:41.750 --> 00:13:41.760 align:start position:0% step three is to work out how many 00:13:41.760 --> 00:13:43.910 align:start position:0% step three is to work out how many degrees<00:13:42.160> of<00:13:42.240> freedom<00:13:42.639> we<00:13:42.800> have 00:13:43.910 --> 00:13:43.920 align:start position:0% degrees of freedom we have 00:13:43.920 --> 00:13:45.990 align:start position:0% degrees of freedom we have this<00:13:44.160> we<00:13:44.399> find<00:13:44.720> by<00:13:44.880> subtracting<00:13:45.519> the<00:13:45.680> number 00:13:45.990 --> 00:13:46.000 align:start position:0% this we find by subtracting the number 00:13:46.000 --> 00:13:48.069 align:start position:0% this we find by subtracting the number of<00:13:46.160> independent<00:13:46.880> variables 00:13:48.069 --> 00:13:48.079 align:start position:0% of independent variables 00:13:48.079 --> 00:13:51.829 align:start position:0% of independent variables from<00:13:48.320> the<00:13:48.399> number<00:13:48.720> of<00:13:48.880> observations 00:13:51.829 --> 00:13:51.839 align:start position:0% 00:13:51.839 --> 00:13:55.110 align:start position:0% in<00:13:52.000> our<00:13:52.240> case<00:13:52.480> with<00:13:52.720> 39<00:13:53.360> observations 00:13:55.110 --> 00:13:55.120 align:start position:0% in our case with 39 observations 00:13:55.120 --> 00:13:59.990 align:start position:0% in our case with 39 observations six<00:13:55.600> independent<00:13:56.320> variables<00:13:58.000> so<00:13:58.320> 39 00:13:59.990 --> 00:14:00.000 align:start position:0% six independent variables so 39 00:14:00.000 --> 00:14:05.590 align:start position:0% six independent variables so 39 minus<00:14:00.399> 6<00:14:00.800> equals<00:14:01.600> 33<00:14:02.240> degrees<00:14:02.560> of<00:14:02.720> freedom 00:14:05.590 --> 00:14:05.600 align:start position:0% 00:14:05.600 --> 00:14:08.310 align:start position:0% step<00:14:05.920> 4<00:14:06.800> is<00:14:06.880> to<00:14:07.040> look<00:14:07.279> up<00:14:07.440> a<00:14:07.519> value<00:14:07.839> in<00:14:08.000> the<00:14:08.079> t 00:14:08.310 --> 00:14:08.320 align:start position:0% step 4 is to look up a value in the t 00:14:08.320 --> 00:14:09.110 align:start position:0% step 4 is to look up a value in the t tables 00:14:09.110 --> 00:14:09.120 align:start position:0% tables 00:14:09.120 --> 00:14:11.430 align:start position:0% tables if<00:14:09.279> we<00:14:09.600> look<00:14:09.839> up<00:14:09.920> for<00:14:10.079> the<00:14:10.240> value<00:14:10.639> with<00:14:10.880> 33 00:14:11.430 --> 00:14:11.440 align:start position:0% if we look up for the value with 33 00:14:11.440 --> 00:14:12.629 align:start position:0% if we look up for the value with 33 degrees<00:14:11.839> of<00:14:11.920> freedom 00:14:12.629 --> 00:14:12.639 align:start position:0% degrees of freedom 00:14:12.639 --> 00:14:15.269 align:start position:0% degrees of freedom and<00:14:12.800> we<00:14:12.959> want<00:14:13.199> a<00:14:13.360> significance<00:14:14.000> level<00:14:14.240> of<00:14:14.399> 5 00:14:15.269 --> 00:14:15.279 align:start position:0% and we want a significance level of 5 00:14:15.279 --> 00:14:16.150 align:start position:0% and we want a significance level of 5 iep 00:14:16.150 --> 00:14:16.160 align:start position:0% iep 00:14:16.160 --> 00:14:20.350 align:start position:0% iep equals<00:14:16.639> 0.05<00:14:18.639> we<00:14:18.800> find<00:14:19.040> a<00:14:19.120> value<00:14:19.519> of 00:14:20.350 --> 00:14:20.360 align:start position:0% equals 0.05 we find a value of 00:14:20.360 --> 00:14:24.389 align:start position:0% equals 0.05 we find a value of 1.69 00:14:24.389 --> 00:14:24.399 align:start position:0% 00:14:24.399 --> 00:14:27.430 align:start position:0% step<00:14:24.720> five<00:14:25.680> is<00:14:25.839> to<00:14:25.920> compare<00:14:26.480> our<00:14:26.639> computed<00:14:27.199> t 00:14:27.430 --> 00:14:27.440 align:start position:0% step five is to compare our computed t 00:14:27.440 --> 00:14:31.269 align:start position:0% step five is to compare our computed t statistic<00:14:28.399> with<00:14:28.639> this<00:14:28.880> value<00:14:29.199> from<00:14:29.440> the<00:14:29.519> table 00:14:31.269 --> 00:14:31.279 align:start position:0% statistic with this value from the table 00:14:31.279 --> 00:14:34.710 align:start position:0% statistic with this value from the table 2.42<00:14:32.240> is<00:14:32.399> greater<00:14:32.720> than<00:14:32.920> 1.69 00:14:34.710 --> 00:14:34.720 align:start position:0% 2.42 is greater than 1.69 00:14:34.720 --> 00:14:37.470 align:start position:0% 2.42 is greater than 1.69 since<00:14:35.040> our<00:14:35.279> computed<00:14:35.839> value<00:14:36.639> is<00:14:36.880> greater<00:14:37.279> than 00:14:37.470 --> 00:14:37.480 align:start position:0% since our computed value is greater than 00:14:37.480 --> 00:14:39.110 align:start position:0% since our computed value is greater than 1.69 00:14:39.110 --> 00:14:39.120 align:start position:0% 1.69 00:14:39.120 --> 00:14:42.150 align:start position:0% 1.69 what<00:14:39.279> can<00:14:39.519> we<00:14:39.760> say<00:14:41.680> we<00:14:41.839> can 00:14:42.150 --> 00:14:42.160 align:start position:0% what can we say we can 00:14:42.160 --> 00:14:45.350 align:start position:0% what can we say we can say<00:14:43.279> that<00:14:43.440> there's<00:14:43.760> only<00:14:44.079> a<00:14:44.320> five<00:14:44.720> percent 00:14:45.350 --> 00:14:45.360 align:start position:0% say that there's only a five percent 00:14:45.360 --> 00:14:46.150 align:start position:0% say that there's only a five percent risk 00:14:46.150 --> 00:14:46.160 align:start position:0% risk 00:14:46.160 --> 00:14:47.829 align:start position:0% risk of<00:14:46.320> concluding<00:14:46.880> that<00:14:47.120> the<00:14:47.279> underlying 00:14:47.829 --> 00:14:47.839 align:start position:0% of concluding that the underlying 00:14:47.839 --> 00:14:49.269 align:start position:0% of concluding that the underlying coefficient<00:14:48.560> value 00:14:49.269 --> 00:14:49.279 align:start position:0% coefficient value 00:14:49.279 --> 00:14:53.990 align:start position:0% coefficient value is<00:14:49.440> different<00:14:49.839> from<00:14:50.160> zero<00:14:50.720> when<00:14:50.880> it<00:14:51.120> isn't 00:14:53.990 --> 00:14:54.000 align:start position:0% 00:14:54.000 --> 00:14:56.069 align:start position:0% if<00:14:54.160> you<00:14:54.320> work<00:14:54.560> through<00:14:54.800> the<00:14:55.040> same<00:14:55.519> steps<00:14:55.920> with 00:14:56.069 --> 00:14:56.079 align:start position:0% if you work through the same steps with 00:14:56.079 --> 00:14:57.750 align:start position:0% if you work through the same steps with each<00:14:56.240> of<00:14:56.320> the<00:14:56.560> other<00:14:56.800> variables 00:14:57.750 --> 00:14:57.760 align:start position:0% each of the other variables 00:14:57.760 --> 00:14:59.509 align:start position:0% each of the other variables you'll<00:14:58.000> find<00:14:58.240> that<00:14:58.639> both<00:14:58.880> corruption 00:14:59.509 --> 00:14:59.519 align:start position:0% you'll find that both corruption 00:14:59.519 --> 00:15:01.350 align:start position:0% you'll find that both corruption variables<00:15:00.160> are<00:15:00.320> significant 00:15:01.350 --> 00:15:01.360 align:start position:0% variables are significant 00:15:01.360 --> 00:15:04.230 align:start position:0% variables are significant at<00:15:01.519> our<00:15:01.680> chosen<00:15:02.160> five<00:15:02.399> percent<00:15:02.800> level<00:15:03.839> but 00:15:04.230 --> 00:15:04.240 align:start position:0% at our chosen five percent level but 00:15:04.240 --> 00:15:05.670 align:start position:0% at our chosen five percent level but none<00:15:04.480> of<00:15:04.560> the<00:15:04.720> other<00:15:04.959> variables 00:15:05.670 --> 00:15:05.680 align:start position:0% none of the other variables 00:15:05.680 --> 00:15:08.949 align:start position:0% none of the other variables are<00:15:07.199> you<00:15:07.360> might<00:15:07.600> also<00:15:07.839> care<00:15:08.079> to<00:15:08.240> check<00:15:08.480> though 00:15:08.949 --> 00:15:08.959 align:start position:0% are you might also care to check though 00:15:08.959 --> 00:15:11.990 align:start position:0% are you might also care to check though that<00:15:09.199> at<00:15:09.360> a<00:15:09.600> ten<00:15:09.839> percent<00:15:10.399> level<00:15:11.279> the<00:15:11.519> policy 00:15:11.990 --> 00:15:12.000 align:start position:0% that at a ten percent level the policy 00:15:12.000 --> 00:15:17.189 align:start position:0% that at a ten percent level the policy distortion<00:15:12.639> variable<00:15:13.680> is<00:15:13.839> significant<00:15:14.480> also 00:15:17.189 --> 00:15:17.199 align:start position:0% 00:15:17.199 --> 00:15:19.110 align:start position:0% so<00:15:17.360> we<00:15:17.600> do<00:15:18.000> have<00:15:18.240> some<00:15:18.480> evidence<00:15:18.880> that 00:15:19.110 --> 00:15:19.120 align:start position:0% so we do have some evidence that 00:15:19.120 --> 00:15:22.150 align:start position:0% so we do have some evidence that corruption<00:15:20.160> really<00:15:20.639> does<00:15:20.959> have<00:15:21.120> an<00:15:21.279> effect 00:15:22.150 --> 00:15:22.160 align:start position:0% corruption really does have an effect 00:15:22.160 --> 00:15:27.110 align:start position:0% corruption really does have an effect on<00:15:22.399> investment<00:15:24.839> activity 00:15:27.110 --> 00:15:27.120 align:start position:0% on investment activity 00:15:27.120 --> 00:15:28.790 align:start position:0% on investment activity although<00:15:27.440> the<00:15:27.600> evidence<00:15:27.920> from<00:15:28.079> our<00:15:28.240> study<00:15:28.639> is 00:15:28.790 --> 00:15:28.800 align:start position:0% although the evidence from our study is 00:15:28.800 --> 00:15:30.710 align:start position:0% although the evidence from our study is not<00:15:29.120> very<00:15:29.519> strong 00:15:30.710 --> 00:15:30.720 align:start position:0% not very strong 00:15:30.720 --> 00:15:33.670 align:start position:0% not very strong there<00:15:30.959> is<00:15:31.120> a<00:15:31.279> strong<00:15:31.680> a<00:15:31.920> priori<00:15:32.560> case<00:15:33.360> for<00:15:33.519> a 00:15:33.670 --> 00:15:33.680 align:start position:0% there is a strong a priori case for a 00:15:33.680 --> 00:15:34.710 align:start position:0% there is a strong a priori case for a link 00:15:34.710 --> 00:15:34.720 align:start position:0% link 00:15:34.720 --> 00:15:36.629 align:start position:0% link and<00:15:34.880> there<00:15:35.120> is<00:15:35.279> at<00:15:35.360> least<00:15:35.759> some<00:15:36.000> evidence<00:15:36.480> to 00:15:36.629 --> 00:15:36.639 align:start position:0% and there is at least some evidence to 00:15:36.639 --> 00:15:39.350 align:start position:0% and there is at least some evidence to support<00:15:37.040> the<00:15:37.199> theory 00:15:39.350 --> 00:15:39.360 align:start position:0% support the theory 00:15:39.360 --> 00:15:41.110 align:start position:0% support the theory this<00:15:39.519> suggests<00:15:40.000> that<00:15:40.160> attempts<00:15:40.480> to<00:15:40.639> control 00:15:41.110 --> 00:15:41.120 align:start position:0% this suggests that attempts to control 00:15:41.120 --> 00:15:43.269 align:start position:0% this suggests that attempts to control corruption<00:15:42.079> are<00:15:42.320> important<00:15:42.880> in<00:15:43.040> all 00:15:43.269 --> 00:15:43.279 align:start position:0% corruption are important in all 00:15:43.279 --> 00:15:44.949 align:start position:0% corruption are important in all societies 00:15:44.949 --> 00:15:44.959 align:start position:0% societies 00:15:44.959 --> 00:15:48.069 align:start position:0% societies corruption<00:15:46.000> exists<00:15:46.560> in<00:15:47.120> in<00:15:47.199> the<00:15:47.360> eu 00:15:48.069 --> 00:15:48.079 align:start position:0% corruption exists in in the eu 00:15:48.079 --> 00:15:51.350 align:start position:0% corruption exists in in the eu and<00:15:48.480> in<00:15:48.560> the<00:15:48.720> united<00:15:49.120> states<00:15:49.920> and<00:15:50.160> in<00:15:50.240> the<00:15:50.399> uk 00:15:51.350 --> 00:15:51.360 align:start position:0% and in the united states and in the uk 00:15:51.360 --> 00:15:54.150 align:start position:0% and in the united states and in the uk but<00:15:51.920> it's<00:15:52.399> on<00:15:52.560> a<00:15:52.639> higher<00:15:52.959> level<00:15:53.440> an<00:15:53.600> ordinary 00:15:54.150 --> 00:15:54.160 align:start position:0% but it's on a higher level an ordinary 00:15:54.160 --> 00:15:55.350 align:start position:0% but it's on a higher level an ordinary people<00:15:54.480> just 00:15:55.350 --> 00:15:55.360 align:start position:0% people just 00:15:55.360 --> 00:15:58.150 align:start position:0% people just people<00:15:55.680> don't<00:15:56.000> don't<00:15:56.320> notice<00:15:56.800> it<00:15:57.759> they<00:15:57.920> don't 00:15:58.150 --> 00:15:58.160 align:start position:0% people don't don't notice it they don't 00:15:58.160 --> 00:15:59.670 align:start position:0% people don't don't notice it they don't know<00:15:58.399> about<00:15:58.800> it 00:15:59.670 --> 00:15:59.680 align:start position:0% know about it 00:15:59.680 --> 00:16:03.189 align:start position:0% know about it it<00:15:59.839> happens<00:16:00.240> on<00:16:00.399> a<00:16:00.880> very<00:16:01.199> high<00:16:01.680> governmental 00:16:03.189 --> 00:16:03.199 align:start position:0% it happens on a very high governmental 00:16:03.199 --> 00:16:05.509 align:start position:0% it happens on a very high governmental level<00:16:04.000> you<00:16:04.160> can<00:16:04.399> i<00:16:04.480> can<00:16:04.720> you<00:16:04.800> know<00:16:04.959> i<00:16:05.040> can<00:16:05.199> t<00:16:05.440> i 00:16:05.509 --> 00:16:05.519 align:start position:0% level you can i can you know i can t i 00:16:05.519 --> 00:16:07.430 align:start position:0% level you can i can you know i can t i can<00:16:05.759> go<00:16:05.920> into<00:16:06.240> many<00:16:06.480> developed<00:16:06.959> economy 00:16:07.430 --> 00:16:07.440 align:start position:0% can go into many developed economy 00:16:07.440 --> 00:16:08.550 align:start position:0% can go into many developed economy perspectives<00:16:08.160> where 00:16:08.550 --> 00:16:08.560 align:start position:0% perspectives where 00:16:08.560 --> 00:16:11.269 align:start position:0% perspectives where again<00:16:08.880> i<00:16:08.959> use<00:16:09.199> the<00:16:09.279> term<00:16:09.600> lobbying<00:16:10.480> okay<00:16:10.959> i'm 00:16:11.269 --> 00:16:11.279 align:start position:0% again i use the term lobbying okay i'm 00:16:11.279 --> 00:16:12.550 align:start position:0% again i use the term lobbying okay i'm pushing<00:16:11.759> things<00:16:12.160> is<00:16:12.320> it 00:16:12.550 --> 00:16:12.560 align:start position:0% pushing things is it 00:16:12.560 --> 00:16:14.949 align:start position:0% pushing things is it is<00:16:12.720> it<00:16:12.880> corruption<00:16:13.519> to<00:16:14.079> to<00:16:14.240> give<00:16:14.480> somebody 00:16:14.949 --> 00:16:14.959 align:start position:0% is it corruption to to give somebody 00:16:14.959 --> 00:16:17.269 align:start position:0% is it corruption to to give somebody money<00:16:15.279> in<00:16:15.440> order<00:16:15.680> to<00:16:15.920> influence<00:16:16.560> decisions 00:16:17.269 --> 00:16:17.279 align:start position:0% money in order to influence decisions 00:16:17.279 --> 00:16:19.189 align:start position:0% money in order to influence decisions for<00:16:17.440> example<00:16:17.839> in<00:16:18.000> the<00:16:18.079> medical<00:16:18.480> profession 00:16:19.189 --> 00:16:19.199 align:start position:0% for example in the medical profession 00:16:19.199 --> 00:16:21.829 align:start position:0% for example in the medical profession well<00:16:19.440> no<00:16:19.759> it's<00:16:19.920> just<00:16:20.399> a<00:16:20.800> pressure<00:16:21.279> group<00:16:21.600> it's 00:16:21.829 --> 00:16:21.839 align:start position:0% well no it's just a pressure group it's 00:16:21.839 --> 00:16:23.509 align:start position:0% well no it's just a pressure group it's a<00:16:22.000> it's<00:16:22.240> a<00:16:22.399> lobby<00:16:22.800> group 00:16:23.509 --> 00:16:23.519 align:start position:0% a it's a lobby group 00:16:23.519 --> 00:16:25.749 align:start position:0% a it's a lobby group okay<00:16:23.839> so<00:16:24.079> and<00:16:24.480> you<00:16:24.639> know<00:16:24.800> you'll<00:16:25.040> see<00:16:25.360> the<00:16:25.600> the 00:16:25.749 --> 00:16:25.759 align:start position:0% okay so and you know you'll see the the 00:16:25.759 --> 00:16:27.189 align:start position:0% okay so and you know you'll see the the big<00:16:26.000> differences<00:16:26.480> in<00:16:26.639> wages 00:16:27.189 --> 00:16:27.199 align:start position:0% big differences in wages 00:16:27.199 --> 00:16:31.110 align:start position:0% big differences in wages at<00:16:27.360> the<00:16:27.519> end<00:16:27.680> of<00:16:27.759> the<00:16:27.920> day<00:16:29.040> is<00:16:29.279> it<00:16:30.160> just<00:16:30.399> another 00:16:31.110 --> 00:16:31.120 align:start position:0% at the end of the day is it just another 00:16:31.120 --> 00:16:33.430 align:start position:0% at the end of the day is it just another is<00:16:31.279> it<00:16:31.519> something<00:16:31.839> in<00:16:32.000> sheep's<00:16:32.399> clothing<00:16:33.120> okay 00:16:33.430 --> 00:16:33.440 align:start position:0% is it something in sheep's clothing okay 00:16:33.440 --> 00:16:34.790 align:start position:0% is it something in sheep's clothing okay you're<00:16:33.600> looking<00:16:33.839> at<00:16:34.000> the<00:16:34.079> same<00:16:34.399> thing 00:16:34.790 --> 00:16:34.800 align:start position:0% you're looking at the same thing 00:16:34.800 --> 00:16:37.829 align:start position:0% you're looking at the same thing just<00:16:35.040> in<00:16:35.120> another<00:16:35.519> type<00:16:35.759> of<00:16:36.000> context 00:16:37.829 --> 00:16:37.839 align:start position:0% just in another type of context 00:16:37.839 --> 00:16:39.269 align:start position:0% just in another type of context the<00:16:38.000> council<00:16:38.399> of<00:16:38.480> europe<00:16:38.800> has<00:16:38.880> declared 00:16:39.269 --> 00:16:39.279 align:start position:0% the council of europe has declared 00:16:39.279 --> 00:16:41.110 align:start position:0% the council of europe has declared corruption<00:16:39.759> a<00:16:39.920> key<00:16:40.240> political<00:16:40.720> issue<00:16:41.040> in 00:16:41.110 --> 00:16:41.120 align:start position:0% corruption a key political issue in 00:16:41.120 --> 00:16:41.990 align:start position:0% corruption a key political issue in europe 00:16:41.990 --> 00:16:42.000 align:start position:0% europe 00:16:42.000 --> 00:16:44.310 align:start position:0% europe and<00:16:42.160> the<00:16:42.320> european<00:16:42.800> union<00:16:43.199> has<00:16:43.440> tried<00:16:44.079> not 00:16:44.310 --> 00:16:44.320 align:start position:0% and the european union has tried not 00:16:44.320 --> 00:16:45.509 align:start position:0% and the european union has tried not always<00:16:44.560> successfully 00:16:45.509 --> 00:16:45.519 align:start position:0% always successfully 00:16:45.519 --> 00:16:47.829 align:start position:0% always successfully to<00:16:45.759> insist<00:16:46.079> on<00:16:46.240> corruption<00:16:46.800> control<00:16:47.600> as<00:16:47.759> a 00:16:47.829 --> 00:16:47.839 align:start position:0% to insist on corruption control as a 00:16:47.839 --> 00:16:49.189 align:start position:0% to insist on corruption control as a condition<00:16:48.320> of<00:16:48.480> membership 00:16:49.189 --> 00:16:49.199 align:start position:0% condition of membership 00:16:49.199 --> 00:16:52.550 align:start position:0% condition of membership for<00:16:49.360> potential<00:16:49.920> new<00:16:50.160> entrants<00:16:52.079> regression 00:16:52.550 --> 00:16:52.560 align:start position:0% for potential new entrants regression 00:16:52.560 --> 00:16:54.949 align:start position:0% for potential new entrants regression analysis<00:16:53.199> can<00:16:53.360> do<00:16:53.600> many<00:16:53.920> things 00:16:54.949 --> 00:16:54.959 align:start position:0% analysis can do many things 00:16:54.959 --> 00:16:57.749 align:start position:0% analysis can do many things but<00:16:55.199> just<00:16:55.600> one<00:16:55.839> of<00:16:55.920> them<00:16:56.800> is<00:16:56.959> to<00:16:57.120> point<00:16:57.440> out<00:16:57.519> the 00:16:57.749 --> 00:16:57.759 align:start position:0% but just one of them is to point out the 00:16:57.759 --> 00:17:02.829 align:start position:0% but just one of them is to point out the need<00:16:58.000> for<00:16:58.160> such 00:17:02.829 --> 00:17:02.839 align:start position:0% 00:17:02.839 --> 00:17:21.669 align:start position:0% controls 00:17:21.669 --> 00:17:21.679 align:start position:0% 00:17:21.679 --> 00:17:23.760 align:start position:0% you