Control of Corruption and Luxury Goods Consumption

Tajaddini, Reza; Gholipour, Hassan F.

doi:10.1111/kykl.12188

Cited by 10 publications

(9 citation statements)

References 64 publications

(95 reference statements)

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“…However, there are also other aspects by which corruption may affect the economy and that have not been addressed in this paper. In this way, this survey could be extended by considering the literature on the impact of corruption on other aspects like migration (see, for example, Dimant et al, 2013;Poprawe, 2015;Cooray and Schneider, 2016), brain drain (see, for example, Docquier and Rapoport, 2012;Saenz and Lewer, 2017;Iacob, 2018), distortion of consumption patterns (see, for example, Myint, 2000;Gokcekus and Suzuki, 2014;Tajaddini and Gholipour, 2018), environmental quality (see, for example, Morse, 2006;Lisciandra and Migliardo, 2017;Sinha et al, 2019), and so on.…”

Section: Discussionmentioning

confidence: 99%

The Consequences of a Grabbing Hand: Five Selected Ways in Which Corruption Affects the Economy

Urbina

2020

ECON

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This article provides a survey of the existing literature on the effects of corruption on economic growth, foreign direct investment, income inequality, human development, and natural resources sector. Both the theoretical arguments and the empirical evidence are considered. It is found that: i) Several studies support a negative impact of corruption on growth (sand the wheel hypothesis), but there are also studies supporting a positive impact (grease the wheels hypothesis); ii) Concerning the impact of corruption on foreign direct investment, the evidence is also mixed since there are studies supporting a negative effect (the "grabbing hand" view), a positive effect (the "helping hand" view), and even no significant effect; iii) The great majority of studies find that corruption generates more income inequality, although some studies find an inverse relationship in regions where the informal sector is large; iv) There is a strong consensus regarding that corruption hampers human development by affecting aspects like poverty, education and health; v) Most of studies show that there is a direct association between corruption and the natural resources sector, especially in the mining, oil and gas industries. In addition, research challenges of economics of corruption in aspects like the definition of corruption, multidisciplinary perspective, econometric specification, and data issues are discussed.

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Section: Discussionmentioning

confidence: 99%

The Consequences of a Grabbing Hand: Five Selected Ways in Which Corruption Affects the Economy

Urbina

2020

ECON

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“…The CPI is one of the most widely used measures of corruption in the literature of political economics (e.g. Cooray et al, 2017; Tajaddini and Gholipour, 2018). Figure 1 illustrates the global map of CPI in 2016.…”

Section: Methodsmentioning

confidence: 99%

“…This finding offers support for the “grabbing-hand” role of corruption. It means that in countries where corruption is widespread, businesses often need to pay bribes to government officials to conduct business, secure government contracts, or obtain operating licenses (Tajaddini and Gholipour, 2018). Hence, local businesses may lose their confidence in their financial performance in the local economy and seek more business opportunities in international markets (e.g.…”

Section: Introductionmentioning

confidence: 99%

Corruption and outbound business travels

Gholipour

Foroughi

2019

Tourism Economics

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This article investigates the effect of corruption on growth of outbound business travels (OBT), after controlling other relevant determinants of demands for OBT. The model is empirically tested for 62 countries from 2007 to 2016. Using a panel fixed effects estimation method, the results show that higher levels of corruption lead to the growth of OBT. We also find that the impact of corruption on OBT is more apparent in emerging economies than developed countries.

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“…In particular, Roberts (2019b) discussed the moral acceptability of luxury consumption in societies with increasing inequality but did not demonstrate a relationship between the two. Moreover, recent works have emphasized the relations between luxury business and corruption, underlining the negative impact of anti-corruption policies on sales of luxury goods (Kuldova, 2019;Tajaddini and Gholipour, 2018;Yuen, 2014). However, authors only draw indirect links to social inequality.…”

Section: Luxury Marketing and Luxury Consumer Behaviormentioning

confidence: 99%

“…Administrative factors consist of integrity and corruption, as the consumption of luxury wines may be higher in countries with lower governance indicators. Previous research has demonstrated that corruption had a positive influence on the consumption of luxury goods (Tajaddini and Gholipour, 2018). Finally, geographic distance is considered as the physical distance between the exporter and importer of wine.…”

Section: Conceptual Model and Hypothesismentioning

confidence: 99%

High-end luxury wine demand and income inequality

Donzé

Katsumata

2021

IJWBR

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Purpose The purpose of this study is to explore the relationship between income inequality and the demand for high-end luxury wine. The consumption of luxury goods has experienced dramatic growth since 2000 but inequality has been neglected by scholars working on luxury consumption. The exploratory research focuses on wine demand between 2000 and 2019 and analyzes the impact of income inequality among other factors, including gross domestic product (GDP) per capita and GDP growth. The authors want to discern whether highly unequal countries import more expensive wine when compared to countries with lower inequality. Design/methodology/approach The authors prepared different data sets based on the year and the trade value of each country to compare the differences and commonalities. The regression models incorporate particular foreign trade statistics (average unit price of wine) as an objective variable and the Gini coefficients to measure the relation between the demand for high-end luxury wines and inequality as an explanatory variable. The models also incorporate other control variables such as economic and institutional conditions. Findings The analysis demonstrates a positive relationship between the unit price of imported wine and the level of income inequality of the importers. This research suggests that conspicuous consumption, as a means of social distinction, is a major driver of the luxury wine market. Other significant factors include GDP per capita and geographic proximity. However, countries with a high power distance and bad governance do not purchase more luxury wines than others. Hence, rather than the social acceptation of wealth and corruption, the consumption of luxury wines is driven by the levels of economic development and inequality. Originality/value This paper is exploratory research that discusses an underexplored issue: the impact of income inequality on the consumption of luxury goods such as high-end luxury wines. It contributes to the literature on wine consumption, luxury business and income and wealth inequalities. These fields are rarely approached together and the research emphasizes the potential offered by such a perspective.

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Control of Corruption and Luxury Goods Consumption

Cited by 10 publications

References 64 publications

The Consequences of a Grabbing Hand: Five Selected Ways in Which Corruption Affects the Economy

The Consequences of a Grabbing Hand: Five Selected Ways in Which Corruption Affects the Economy

Corruption and outbound business travels

High-end luxury wine demand and income inequality

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