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Corrupt thy neighbor? New evidence of corruption contagion from bordering nations

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  • Goel, Rajeev K.
  • Saunoris, James W.

Abstract

The continuing presence of corruption worldwide has policymakers looking for broader trans-national efforts to combat corruption. We examine the effects of a nation’s physical proximity (via land borders and the number of bordering nations) as well as prevailing corruption on cross-border corruption spillovers. Using data on 147 countries from 2012-2018, results show that while border corruption positively affects corruption in a nation, a longer land border, and more neighbors have a mitigating effect on corruption. Nesting the analysis in the literature on the determinants of cross-national corruption, these new findings imply that a nation’s geographic location might play a larger role in transmissions of corruption than previously recognized. This finding has relevance for the design of anti-corruption coordination across nations.

Suggested Citation

  • Goel, Rajeev K. & Saunoris, James W., 2022. "Corrupt thy neighbor? New evidence of corruption contagion from bordering nations," Journal of Policy Modeling, Elsevier, vol. 44(3), pages 635-652.
    • Handle: RePEc:eee:jpolmo:v:44:y:2022:i:3:p:635-652
    DOI: 10.1016/j.jpolmod.2022.05.004
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    More about this item

    Keywords

    Corruption; Spillovers; Contagion; Border; Government size; Spatial effects;
    All these keywords.

    JEL classification:

    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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