Political economy of corruption in Turkey: declining petty corruption, rise of cronyism?

PurposeThe study investigates the effect of political instability and employee tenure security on the performance of firms in middle-income economies (MIEs) after controlling for the influence of corruption, international quality certification, external auditor services and firm age. It examines whether ownership and sector effects matter in the explored relationships.Design/methodology/approachThe study adopts the generalized method of moments estimator and collects firm-level cross-sectional data from 77 MIEs.FindingsThe evidence shows that political uncertainty, employee tenure security and firm age negatively impact firm performance. Also, external quality assurance mainly improves firm performance. Additionally, foreign-owned firms benefit from corruption more than their domestic counterparts. Moreover, there are ownership and sector effects in the firm performance drivers.Practical implicationsThe findings suggest the need for MIE firm managers to implement policies and programs to improve permanent employees' efficiency, commitment and honesty. Policy makers and political actors must work toward a stable political environment in MIEs. The policy must also focus on at least minimizing corruption.Originality/valueThe study shows the contributions of employee tenure security, political instability and corruption to the performance of MIE firms. It documents sector and ownership effects in the factors influencing firm performance.

show abstract

“…The ETS evidence appears inconsistent with Lisi and Malo (2017), Moric et al . (2021) and Rodríguez-Gutiérrez (2007) but syncs with Kimya (2019).…”

Section: Resultsmentioning

confidence: 99%

“…(2021), Koen et al . (2020) and Kimya (2019), argue that ETS constrains firm performance. The evidence of this study concurs with the notion that ETS hurts firms' performance.…”

Section: Discussionmentioning

confidence: 99%

Political environment, employee tenure security and firm performance in middle-income economies

Boamah

Ofori-Yeboah

Appiah

2023

JED

View full text Add to dashboard Cite

show abstract

“…However, the reckless economic policies of the Turkish Prime Minister, including artificially low-interest rates and high debt, have led to economic deficits and inflation, and a large number of foreigners and investors have fled Turkey, causing Turkey to face huge foreign debts [54]. Kimya [55] pointed out that corruption is divided into two levels: large and small. Turkey has achieved certain results in improving small-scale corruption, such as simply reducing corruption-related crime rates, etc., but the ruling party has failed to enact party and campaign finance reforms under the law, widening nepotism between the government and certain companies, and securing lucrative bids for some.…”

mentioning

confidence: 99%

Who Is the Most Effective Country in Anti-Corruption? From the Perspective of Open Government Data and Gross Domestic Product

et al. 2022

View full text Add to dashboard Cite

Corruption represents the misuse of public power by government departments for personal gain, hindering a country’s economic growth. Corruption cannot be eliminated by implementing the national democratic system, and mature democratic countries also exist with varying degrees of corruption. Corruption affects people’s trust in the public sector and the country’s economic development. Open government data can help people understand the governance performance of the government to reduce corruption in the public sector. Citizens can use open government data to generate innovative applications and economic value. This study uses a two-stage data envelopment analysis method to assess the anti-corruption efficiency of 21 countries from 2013 to 2017 through open government data, the corruption perception index, and GDP data. Then, the efficiency analyzed is introduced into the BCG (Boston Consulting Group) matrix to observe the distribution of these 21 countries. Analyzing the results showed that Uruguay and Costa Rica in Central and South America are the two most influential countries in fighting corruption. Turkey is at the bottom in the evaluation of anti-corruption efficiency. In addition, discussions of the included countries for their possible improvement in anti-corruption are also provided by using the association rule’s analysis. The study results will provide a reference for governments to effectively carry out anti-corruption work in the future.

show abstract

“…For instance, as Emmanuel Letebe demonstrates in his chapter on Lesotho; the successful trials of several senior public officials for alleged corruption (bribery and public funds embezzlement) proved to be an important milestone in Lesotho's fight against corruption. In contrast, political corruption in Russia has been described as "systemic in nature" (Schulze & Zakharov, 2018), while some (e.g., Kimya, 2018) is an increasing need for those interested in understanding and promoting ethical conduct to be exposed to the wide array of challenges, issues and lessons that this book highlights, particularly with growing demands for governments to be more responsive and accountable to their citizens.…”

mentioning

confidence: 99%

“…For instance, as Emmanuel Letebe demonstrates in his chapter on Lesotho; the successful trials of several senior public officials for alleged corruption (bribery and public funds embezzlement) proved to be an important milestone in Lesotho's fight against corruption. In contrast, political corruption in Russia has been described as “systemic in nature” (Schulze & Zakharov, 2018), while some (e.g., Kimya, 2018) have argued that the ruling political party in Turkey has increased its influence over business groups. The lack of political will to investigate and prosecute senior government officials implicated in acts of fraud and corruption have often hindered effective implementation of anti‐corruption efforts in larger economies.…”

mentioning

confidence: 99%

Tackling corruption in commonwealth Africa: Case studies of Botswana, Lesotho, Mauritius, Rwanda and Seychelles Roger Koranteng. Commonwealth Secretariat, 2018. 152 pages. E‐book ( PDF ): £30.00. Paperback: £40.00. ISBN : 9781849291828

Omotoye

2020

J Public Affairs

View full text Add to dashboard Cite

Political economy of corruption in Turkey: declining petty corruption, rise of cronyism?

Cited by 15 publications

References 26 publications

Political environment, employee tenure security and firm performance in middle-income economies

Political environment, employee tenure security and firm performance in middle-income economies

Who Is the Most Effective Country in Anti-Corruption? From the Perspective of Open Government Data and Gross Domestic Product

Tackling corruption in commonwealth Africa: Case studies of Botswana, Lesotho, Mauritius, Rwanda and Seychelles Roger Koranteng. Commonwealth Secretariat, 2018. 152 pages. E‐book ( PDF ): £30.00. Paperback: £40.00. ISBN : 9781849291828

Contact Info

Product

Resources

About