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Corruption, globalization and development: How are these three phenomena related?

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  • Lalountas, Dionisios A.
  • Manolas, George A.
  • Vavouras, Ioannis S.
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    Abstract

    This paper examines the existence of any relations between globalization and corruption using cross-section data for 127 countries. The estimation results indicate that, under the assumption of a linear model, a positive correlation between corruption and globalization exists, while when linearity is dropped there seems to be no significant effect of globalization on corruption. According to our analysis, linearity is a good approximation only for middle and high income countries. Hence, our main conclusion is that globalization is a powerful weapon against corruption only for middle and high income countries, while for low income countries globalization has no significant impact on corruption. For such countries fighting corruption requires additional global action aiming at the reduction of poverty.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Policy Modeling.

    Volume (Year): 33 (2011)
    Issue (Month): 4 (July)
    Pages: 636-648

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    Handle: RePEc:eee:jpolmo:v:33:y:2011:i:4:p:636-648

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    Web page: http://www.elsevier.com/locate/inca/505735

    Related research

    Keywords: Corruption Globalization Anti-corruption policies Public sector Institutional reforms;

    References

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    Cited by:
    1. Asongu, Simplice A, 2013. "Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting," MPRA Paper 52209, University Library of Munich, Germany.
    2. Asongu Simplice, 2012. "Globalization, (fighting) corruption and development: how are these phenomena linearly and nonlinearly related in wealth effects?," Working Papers 12/024, African Governance and Development Institute..
    3. Simplice A Asongu, 2014. "On the substitution of institutions and finance in investment," Economics Bulletin, AccessEcon, vol. 34(3), pages 1557-1574.
    4. Neiva de Figueiredo, João, 2013. "Are corruption levels accurately identified? The case of U.S. states," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 134-149.
    5. Asongu, Simplice, 2014. "On foreign aid distortions to governance," MPRA Paper 56812, University Library of Munich, Germany.
    6. repec:rom:campco:v:9:y:2013:i:1:p:210-219 is not listed on IDEAS

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