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Exploring differences in corruption: the role of neighboring countries

Author

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  • Miguel Márquez
  • Javier Salinas‐Jiménez
  • Ma. del Mar Salinas‐Jiménez

Abstract

The aim of this paper is to study whether corruption spreads across neighboring countries. Spatial econometric techniques are used to analyze corruption interactions, testing whether the perception of corruption in neighboring countries affect a country’s own corruption once other variables are controlled for. For a given country it is found that corruption varies neither with the behavior of its neighbors (there is no endogenous interaction) nor with their exogenous characteristics (there is no contextual interaction). Corruption is therefore not contagious, but neighboring countries tend to show similar levels of corruption because they face similar characteristics and similar institutional environments.

Suggested Citation

  • Miguel Márquez & Javier Salinas‐Jiménez & Ma. del Mar Salinas‐Jiménez, 2011. "Exploring differences in corruption: the role of neighboring countries," Journal of Economic Policy Reform, Taylor and Francis Journals, vol. 14(1), pages 11-19.
    • Handle: RePEc:taf:jecprf:v:14:y:2011:i:1:p:11-19
    DOI: 10.1080/17487870.2011.534287
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    Cited by:

    1. Rajeev Goel & James Saunoris, 2014. "Global corruption and the shadow economy: spatial aspects," Public Choice, Springer, vol. 161(1), pages 119-139, October.
    2. John O'Trakoun, 2017. "New perspectives on corruption contagion," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 26(5), pages 552-565, July.
    3. 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.

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