Corruption and Confidence in Public Institutions: Evidence from a Global Survey
AbstractWell-functioning institutions matter for economic development. In order to operate effectively, public institutions must also inspire confidence in those they serve. We use data from the Gallup World Poll, a unique and very large global household survey, to document a quantitatively large and statistically significant negative correlation between corruption and confidence in public institutions. This suggests an important indirect channel through which corruption can inhibit development: by eroding confidence in public institutions. This correlation is robust to the inclusion of a large set of controls for country and respondent-level characteristics. Moreover we show how it can plausibly be interpreted as reflecting at least in part a causal effect from corruption to confidence. Finally, we provide evidence that individuals with low confidence in institutions exhibit low levels of political participation, show increased tolerance for violent means to achieve political ends, and have a greater desire to “vote with their feet” through emigration. Copyright , Oxford University Press.
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Bibliographic InfoArticle provided by World Bank Group in its journal The World Bank Economic Review.
Volume (Year): 25 (2011)
Issue (Month): 2 ()
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Other versions of this item:
- Clausen, Bianca & Kraay, Aart & Nyiri, Zsolt, 2009. "Corruption and confidence in public institutions : evidence from a global survey," Policy Research Working Paper Series 5157, The World Bank.
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Corruption and Confidence in Public Institutions
by Ariel Goldring in Free Market Mojo on 2010-01-17 08:16:39
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CEPR Discussion Papers
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- Van-Ha Le & Jakob de Haan & Erik Dietzenbacher, 2013. "Do Higher Government Wages Reduce Corruption? Evidence Based on a Novel Dataset," CESifo Working Paper Series 4254, CESifo Group Munich.
- Asli Demirguc-Kunt & Leora Klapper, 2013. "Measuring Financial Inclusion: Explaining Variation in Use of Financial Services across and within Countries," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 46(1 (Spring), pages 279-340.
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