The Determinants of Corruption: Cross‐Country‐Panel‐Data Analysis

Elbahnasawy, Nasr G.; Revier, Charles F.

doi:10.1111/j.1746-1049.2012.00177.x

Cited by 132 publications

(93 citation statements)

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“…It has been noted that there are 3000 titles of articles investigating corruption afterward, and more than 500 articles specifically discuss corruption in the perspective of economics (Mishra, 2005). Ideas regarding the study of economics of corruption are mostly classified into three main factors of corruption: (1) economic factors; (2) political factors; and (3) social and cultural factors (Sandholtz & Koetzle, 2000;Nwabuzor, 2005;Akcay, 2006;Pellegrini & Gerlagh, 2008;Billger & Goel, 2009;Ata & Arvas, 2011;Agbiboa, 2011;Aggrey, 2012;Elbahnasawy & Revier, 2012;Dong & Torgler, 2013;Pieroni & d'Agostino, 2013). In addition, the study of economics of corruption in its development can be traced from some studies finding out the effects of corruption toward economy activities, such as (1) the effects of corruption to real GDP (Mauro, 1996;Leite & Weidman, 1999;Tanzi & Davoodi, 2000;Abed & Davoodi, 2000); (2) the effects of corruption to international trade (Anderson & Marcouiller, 2002;De Groot et al, 2004;Wei, 2000a); (3) the effects of corruption to government expenditure (Mauro, 1998); (4) the effects of corruption to government revenue (Tanzi & Davoodi, 2000); (5) the effects of corruption to the interest of investment (Henisz, 2000;Wei, 2000;Wei & Javorcik, 2002); (6) the effects of corruption to the distribution of income and poverty (Husted, 1999); and (7) the effects of corruption to inflation (Al-Mahrubi, 2000).…”

Section: Definition Of Corruption and Economics Of Corruptionmentioning

confidence: 99%

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Saputra¹

2019

Journal of International Studies

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This study aims to examine the impact of corruption on bilateral trade flows in developed and developing countries by using an extension of the gravity panel model. The model reviews 30 countries among which 19 are developed countries and 11 are developing ones, during the period of 1995-2016. For the impact of corruption on export activities, it appears that domestic level of corruption has insignificant effect upon bilateral export in both developed and developing countries, but the asymmetric effect of the partner country's corruption level is significantly apparent in the case of export. Positive effect from low level of partner countries' corruption in raising bilateral export is found to be greater for developing countries than for developed ones. The effect of corruption on bilateral imports tend to be similar to bilateral exports, however, it has been also found that low domestic corruption level in the reporting countries will positively affect import activities and that fact becomes more apparent for developing countries.

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Section: Definition Of Corruption and Economics Of Corruptionmentioning

confidence: 99%

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Saputra¹

2019

Journal of International Studies

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“…The essential role of the quality of institutions in preventing corruption has been highlighted in several studies (Hunady, 2017;Dreher et al, 2009; Mocan, 2008; Sööt & Rootalu, 2012). The rule of law is often reported as the crucial variable related to institutions and their effect on corruption (Elbahnasawy & Revier, 2012;Kim, 2014;Iwasaki and Suzuki, 2012). With respect to this issue Andrés & Goel (2011) argue that the higher levels of corruption are also correlated with higher levels of software piracy in the country.…”

Section: Introductionmentioning

confidence: 99%

The effect of the Internet on corruption awareness and corruption incidence in the EU

Huňady¹

2019

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It is obvious that the Internet connection brings several unquestionable benefits to people and society.However, not all of them can be seen at first sight. This study examines the potential effect of Internet usage on corruption awareness as well as experience with corruption and actual reporting of corruption cases. We conducted mainly IV probit and 2SLS regression based on the data from the Eurobarometer survey. We have found that intensity of Internet usage seems to be a significant factor affecting respondents' knowledge about where to report the corruption. Internet usage appears to have a positive effect on the accuracy of corruption extent estimation in a country. Moreover, our results strongly suggest that those using the Internet frequently are more likely to report experiences of corruption. In line with this result, promoting of Internet usage and enabling Internet access can be seen as a potential anti-corruption tool. Our findings have several important implications for anti-corruption and bribery policies. Due to the fact that especially the initial installation cost proves to be the essential problem, the effective strategy should also include the subsidies for Internet access. Key points for practitioners:-Respondents who are using the Internet more often have a better awareness of corruption, and they are more often willing to report the corruption.-The public support of internet usage seems to be a potentially effective anti-corruption policy, -Especially relatively high initial installation cost seems to be the most significant barrier to Internet adoption and usage.

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“…Another data issue comes from the Rodrik critique (Rodrik, 2012) which points out that policy indicators are not independent random variables, but conscious and strategic decisions made by governments in an attempt to obtain specific goals. Thus, the choice of development indicators as exogenous variables might not 7 On one hand, several cross-country studies find a significant RoL coefficient (Ades and Tella, 1997;Leite and Weidmann, 1999;Broadman and Recanatini, 2001;Brunetti and Weder, 2003;Herzfeld and Weiss, 2003;Ali and Isse, 2002;Park, 2003;Damania et al, 2004;Croix and Delavallade, 2011;Iwasaki and Suzuki, 2012;de Mendonça and da Fonseca, 2012;Elbahnasawy and Revier, 2012). On the other, others find significant coefficients among alternative governance indicators; some related to current policies (e.g., government effectiveness, decentralization, freedom of the press, federal system, women in parliament, etc.)…”

Section: Econometric Studiesmentioning

confidence: 99%

Does Better Governance Guarantee Less Corruption? Evidence of Loss in Effectiveness of the Rule of Law

Guerrero

Ramos

2019

SSRN Journal

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Corruption is an endemic societal problem with profound implications in the development of nations. In combating this issue, cross-national evidence supporting the effectiveness of the rule of law seems at odds with poorly realized outcomes from reforms inspired in such literature. This paper provides an explanation for such contradiction.By taking a computational approach, we develop two methodological novelties into the empirical study of corruption: (1) generating large within-country variation by means of simulation (instead of cross-national data pooling), and (2) accounting for interactions between covariates through a spillover network. The latter (the network), seems responsible for a significant reduction in the effectiveness of the rule of law; especially among the least developed countries. We also find that effectiveness can be boosted by improving complementary policy issues that may lie beyond the governance agenda.Moreover, our simulations suggest that improvements to the rule of law are a necessary yet not sufficient condition to curve corruption. arXiv:1902.00428v1 [econ.GN] 1 Feb 2019In recent years, public governance has become one of the main topics in the international development agenda. However, in spite of significant efforts to improve governance through the rule of law, 1 there seems to be a mismatch between the expectations from policy prescriptions and real-world outcomes. 2 In this regard, the World Bank asserts -in its 2017 World Development Report: Governance and the Law -that legal improvements to the rule of law have rarely succeed in achieving drastic reductions of corruption. 3 Baez-Camargo and Passas (2017) offer a clue and one of the motivations for this study: that the ineffectiveness of reforms to the rule of law may originate from inconsistencies between the de jure governance and the social norms that guide citizens and bureaucrats. This paper studies, theoretically and empirically, a particular avenue for the ineffectiveness of the rule of law by means of a computational model. Its main contribution is new evidence of loss in effectiveness due to spillover effects to/from other policy issues. That is, while isolated improvements to the rule of law should, indeed, generate lower levels of corruption, such outcome is poorly realized because, in the real world, 1) the ceteris paribus conditions for other policy issues do not hold and 2) co-movements in other topics introduce effects that may oppose the traditional conduits of anti-corruption policies (i.e., inverting the net benefit of misbehaving and curtailing the discretionary use of resources). For example, positive externalities to policy issue i induce a new incentive structure in which the official in charge of i has more opportunities to divert funds because its inflated performance (due to the externalitites) looks positive under imperfect supervision.Considering a non-ceteris paribus setting with spillover effects allows us to move beyond 1 The Oxford Dictionary defines rule of law as "the restriction of the arbitr...

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The Determinants of Corruption: Cross‐Country‐Panel‐Data Analysis

Cited by 132 publications

References 40 publications

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

Corruption perception and bilateral trade flows: Evidence from developed and developing countries

The effect of the Internet on corruption awareness and corruption incidence in the EU

Does Better Governance Guarantee Less Corruption? Evidence of Loss in Effectiveness of the Rule of Law

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