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Corruption in Emerging Markets: A Multidimensional Study

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  • Turhan Kaymak
  • Eralp Bektas

Abstract

The role played by emerging markets in the global economy is well documented. However, these markets’ rapid economic development has not always been followed by commensurate advancements in their legal, political, and social institutions, which can lead to higher levels of corruption. Essentially, emerging markets may not possess the necessary governance mechanisms to deal adequately with this problem. As such, this paper uses a number of established indices to measure the relationship between corruption and a myriad of economic, financial, social, and political dimensions. A number of hypotheses linking corruption in emerging markets to these dimensions are developed and subsequently tested. We find that market growth rate, market intensity, market receptivity, commercial infrastructure, reduced country risk, and economic freedom are associated with lower levels of corruption in emerging markets. Our study adds to the expanding literature on corruption by including variables that have not been tested before, and by focusing on how graft influences emerging markets. We conclude with a discussion of policy implications that are related to our findings. Copyright Springer Science+Business Media Dordrecht 2015

Suggested Citation

  • Turhan Kaymak & Eralp Bektas, 2015. "Corruption in Emerging Markets: A Multidimensional Study," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 124(3), pages 785-805, December.
    • Handle: RePEc:spr:soinre:v:124:y:2015:i:3:p:785-805
    DOI: 10.1007/s11205-014-0814-4
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    2. Chandan Sharma, 2021. "Does Corruption Sand The Wheels Of Financial Sector Development? Evidence From Global Panel Data," Journal of Financial Management, Markets and Institutions (JFMMI), World Scientific Publishing Co. Pte. Ltd., vol. 9(02), pages 1-32, December.
    3. Gen-Fu Feng & Bo Sui & Min-Yi Dong & Chun-xia Jiang & Chun-Ping Chang, 2018. "Border is better than distance? Contagious corruption in one belt one road economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1909-1928, July.
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    5. Masoud Khodapanah & Zahra Dehghan Shabani & Mohammad Hadi Akbarzadeh & Mahboubeh Shojaeian, 2022. "Spatial spillover effects of corruption in Asian countries: Spatial econometric approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(4), pages 699-717, August.
    6. Zhao Zhai & Ming Shan & Amos Darko & Albert P. C. Chan, 2021. "Corruption in Construction Projects: Bibliometric Analysis of Global Research," Sustainability, MDPI, vol. 13(8), pages 1-21, April.

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