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The Nonlinear Impact Of Globalization On Corruption

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  • Jayoti Das
  • Cassandra DiRienzo

Abstract

Some researchers have argued that globalization has increased the opportunity for corrupt practices, while others state that globalization has lead to a decrease in corruption as countries wishing to join the global economy must comply with international anti-corruption rules and regulations. This study empirically explores this paradox using the Corruption Perceptions Index (CPI) and the Konjunkturforschungsstelle (KOF) globalization Index. The results suggest that a nonlinear relationship exists between globalization and corruption. Specifically, the results of this study suggest that the effect of globalization on corruption is dependent on the level of globalization with the highest corruption levels realized at moderate or transitioning levels of globalization.

Suggested Citation

  • Jayoti Das & Cassandra DiRienzo, 2009. "The Nonlinear Impact Of Globalization On Corruption," The International Journal of Business and Finance Research, The Institute for Business and Finance Research, vol. 3(2), pages 33-46.
    • Handle: RePEc:ibf:ijbfre:v:3:y:2009:i:2:p:33-46
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    Cited by:

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    2. Meghna Dutta, 2018. "Globalisation, Corruption and Women Empowerment," Economic Papers, The Economic Society of Australia, vol. 37(3), pages 327-343, September.
    3. Olmos, Lorena & Bellido, Héctor & Román-Aso, Juan A., 2020. "The effects of mega-events on perceived corruption," European Journal of Political Economy, Elsevier, vol. 61(C).
    4. Rachida Aïssaoui & Frances Fabian, 2022. "Globalization, economic development, and corruption: A cross-lagged contingency perspective," Journal of International Business Policy, Palgrave Macmillan, vol. 5(1), pages 1-28, March.
    5. Héctor Bellido & Lorena Olmos & Juan A. Román-Aso, 2021. "The influence of government ideology on corruption: the impact of the Great Recession," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 677-708, July.
    6. Orhan Cengiz, 2021. "The Political Economics of Trade Openness and Its Impacts on Corruption," Istanbul Journal of Economics-Istanbul Iktisat Dergisi, Istanbul University, Faculty of Economics, vol. 71(71-2), pages 499-525, December.
    7. Gabrielle Poeschl & Raquel Ribeiro, 2012. "Everyday opinions on grand and petty corruption: A Portuguese study," OBEGEF Working Papers 013, OBEGEF - Observatório de Economia e Gestão de Fraude;OBEGEF Working Papers on Fraud and Corruption.
    8. Hans Erik Næss, 2019. "Investment Ethics and the Global Economy of Sports: The Norwegian Oil Fund, Formula 1 and the 2014 Russian Grand Prix," Journal of Business Ethics, Springer, vol. 158(2), pages 535-546, August.
    9. Harald Badinger & Elisabeth Nindl, 2012. "Globalization, Inequality, and Corruption," Department of Economics Working Papers wuwp139, Vienna University of Economics and Business, Department of Economics.
    10. Lalountas, Dionisios A. & Manolas, George A. & Vavouras, Ioannis S., 2011. "Corruption, globalization and development: How are these three phenomena related?," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 636-648, July.
    11. Salma Karim & Md. Qamruzzaman & Ishrat Jahan, 2023. "Nexus between Government Debt, Globalization, FDI, Renewable Energy, and Institutional Quality in Bangladesh," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 443-456, May.
    12. Nguyen Ngoc Thach & Bui Hoang Ngoc, 2021. "Impact of Economic Freedom on Corruption Revisited in ASEAN Countries: A Bayesian Hierarchical Mixed-Effects Analysis," Economies, MDPI, vol. 9(1), pages 1-16, January.

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    More about this item

    Keywords

    globalization; corruption; KOF globalization index;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption

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