Business cycle and corruption

Gökçekuş, Ömer; Suzuki, Yui

doi:10.1016/j.econlet.2011.01.023

Cited by 11 publications

(19 citation statements)

References 9 publications

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“…To do so, we follow Melitz and Zumer (2002) and use the regression model that they used to examine the regional distribution and stabilization through the central government budget. Gokcekus and Suzuki (2011) used the same model to analyze the impact of business cycle on corruption.…”

Section: Methodsmentioning

confidence: 99%

“…The deviation, (INCOME i,t -INCOME i ), reflects transitory income. Gokcekus and Suzuki (2011) have shown that coefficient β 1 can exist even when there is no movement in the time series, whereas coefficient β 2 depends entirely on such movement. This can be shown by decomposing Equation (1) into two components:…”

Section: Methodsmentioning

confidence: 99%

“…In other words, it shows the cyclical behavior of divorce. Melitz and Zumer (2002) and Gokcekus and Suzuki (2011) argue that a distributed-lag version of the equations is more appropriate when there are lagged impact. Accordingly, Equation (3) could be re-formulated as…”

Section: Methodsmentioning

confidence: 99%

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’Til recession do us part: booms, busts and divorce in the United States

Chowdhury

2013

Applied Economics Letters

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A general hypothesis regarding the impact of permanent income levels and business cycle fluctuations on divorce rate at the state level in the United States is analyzed in the paper. Using data for 45 states over the 1978-2009 sample period, the paper shows that the higher the level of transitory income, the higher is the incidence of divorce. In other words, divorce is pro-cyclical. Why do divorce decrease during recession and increase during expansion? When an economy is in crisis and people's incomes are low, the cost of divorce will prevent a couple from divorcing irrespective of the quality of their marriage. In this case, divorce is not an effective option. Extending this reasoning to the Great Recession of 2007-9, it can be argued that scarce employment opportunities and reductions in the value of martial assets had forced couples to remain together, notwithstanding marital difficulties. As the economy moved into a slow and moderate recovery beginning in mid-2009, this pent-up demand for divorce was released and the rates increased. That, in large part, is why divorce generally follow a 'pro-cyclical' course, fluctuating in sympathy with the economy.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

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’Til recession do us part: booms, busts and divorce in the United States

Chowdhury

2013

Applied Economics Letters

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“…Sumber daya ekonomi pun tergerogoti karena korupsi. Pertumbuhan ekonomi pun melambat dan memunculkan ekonomi bayangan dalam sektor keuangan (Méon & Sekkat, 2005;Mauro, 1995;Dreher & Schneider, 2010), memperlambat bisnis dan menciptakan ketimpangan yang semakin lebar (Gokcekus & Yuuki, 2011). Korupsi tidak hanya hadir di negara-negara berkembang namun, juga terjadi di negara-negara maju (Johnston, 2005;Khan 2000;Rose-Ackerman and Søreide, 2012).…”

Section: Pendahuluan Latar Belakangunclassified

Kajian Korupsi sebagai Proses Sosial: Melacak Korupsi di Sektor Sumber Daya Alam di Indonesia

Capri

Cahyati‬

Hasanah

et al. 2021

Integritas: J. Antikorupsi

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Corruption action develops way more advance compare to corruption studies in Indonesia. Corruption studies are mostly focusing on institutional corruption or using an institutional approach to understand corruption. This research offers to understand corruption better using actor-based and network approaches. Utilising social network analysis (SNA), researchers unpacking corrupt relational actors in natural resources, especially in oil and gas and forestry in Indonesia. We collected six important findings; corruption creates dependencies amongst actors; to be corrupt, an actor must have a strong network and resources that can offer and deliver multi-interests. Corrupt action is a repeated action that creates interlocking relations amongst actors. Interlocking relation serves as a safety belt for each chauffeur. Institutionalisation of corrupt networks only requires a strong corrupt network. The institutionalised corrupt networks shape a shortcut both for the private and public sectors-a short cut that makes bribery and exchange permits possible.

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“…Faculty of Management and Business, Tampere University, Finland Gokcekus and Suzuki (2011) performed an empirical study on the nexus between business cycles and corruption. They took the proposition of Galbraith (1997) under scrutiny and provided an econometric test on the theory.…”

Section: Hannu Laurilamentioning

confidence: 99%

Do Business Booms Trigger Corruption?

Keita

Laurila

2021

EIS

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In the literature, the nexus between economic growth and corruption is well covered, but there are only few studies on cyclical variations of corruption. For example, Galbraith (1997) claims that embezzlement flourishes in business booms and withers in recessions, and Gokcekus and Suzuki (2011) support the claim by finding a positive correlation between transitory income and corruption. This paper retests the argument and produces conflicting results. It is found that corruption shrinks as transitory income increases meaning that economic booms foster integrity rather than corruption. Moreover, the negative correlation is strong in high-income countries and in those with sound rule of law which points to developed countries, whereas the effect remains relatively weak in countries with low income or poor rule of law which points to developing countries. The finding is relevant also from the perspective of the European Union.

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Business cycle and corruption

Cited by 11 publications

References 9 publications

’Til recession do us part: booms, busts and divorce in the United States

’Til recession do us part: booms, busts and divorce in the United States

Kajian Korupsi sebagai Proses Sosial: Melacak Korupsi di Sektor Sumber Daya Alam di Indonesia

Do Business Booms Trigger Corruption?

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