Characterising Corruption by Adopting a Systemic Risk Perspective: Importing Macro Prudential Financial Regulation into the Policy Debate

Abstract

This article aims to theorise corruption from a “macro” perspective. It elaborates upon a range of social sciences literatures, notably from criminology and political sciences, that have discussed various “macro”-level factors contributing to corruption, including market characteristics. Its most distinct contribution to the literature is in importing the concept of “systemic risk” – thus far chiefly examined in the financial regulation literature – to the analysis of corruption. It draws on the financial literature on systemic risk and macro-prudential regulation and supervision. In so doing, it elaborates upon concepts such as “network” and “contagion” as to theorise the effects of corruption on resource allocation. This is supplemented by reference to the legal canon of literature on market regulation.

Multidimensional Perspective Analysis to Ensure Effective Governance in War-Torn Countries

“…In order to ease the dilution and distribution of social tensions and to foster social harmony, stability primarily entails the creation of conditions that allow a governing system to fulfill its commitments towards its citizens in a fair and equal manner. As per the author [16] manifest the following four elements support political stability, cabinet stability, and the stability of the judicial system, the government's structure, which consists of its three branches the political executive, legislature, and judiciary; bureaucracy; The military; and The Public, which comprises the media and opinion leaders.…”

National Governance Index, Corruption Index and Growth Rate—International Evidence from Sub-Saharan and MENA Countries

“…To ensure the robustness of our findings, we implemented the 2SLS and instrumental variables to further examine the endogeneity concern of corruption measure and governance index. Following the previous studies by Brenton-Rule et al ( 2016), Anheier et al (2018), Berger et al (2020), Mselmi (2020), andMinto (2020), we collected instrumental variables including corruption control (CPIW), government effectiveness (GOVEFF), political stability (PS), regulatory quality (RQ), the rule of law (RL), voice and accountability (VOICACC), carbon dioxide emissions per capita (CO 2 ), and government consumption expenditure (GCEX). We then applied 2SLS to estimate corruption and governance as a function of the instrumental variables and control variables in the first-stage regression, and, in the second stage, to estimate GPD growth as a function of the corruption and governance predicted from the first stage.…”