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Corruption and welfare: A simple econometric across countries analysis

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  • Joko Mariyono

    (Faculty of Economics, Pancasakti University)

Abstract

The objective of this study is to measure the impact of corruption on welfare, and to compare the magnitude of impact between high-income and low-income countries. Corruption perception index is used as a proxy of corruption level; human development index is used to represent welfare. Natural resource endowment and international trade are included in analysis to control robustness of corruption. The results show that corruption has negative impact on welfare. The impact in lowincome countries is more destructive. Natural resource endowment and trade also have significant impacts, particularly for low-income countries. Since the corruption is destructive, government should eradicate corruption using preventive and repressive actions.

Suggested Citation

  • Joko Mariyono, 2012. "Corruption and welfare: A simple econometric across countries analysis," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 4(1), pages 63-75, April.
    • Handle: RePEc:uii:journl:v:4:y:2012:i:1:p:63-75
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    Cited by:

    1. Nerajda Feruni & Eglantina Hysa & Mirela Panait & Irina Gabriela Rădulescu & Alina Brezoi, 2020. "The Impact of Corruption, Economic Freedom and Urbanization on Economic Development: Western Balkans versus EU-27," Sustainability, MDPI, vol. 12(22), pages 1-22, November.
    2. repec:ers:journl:v:xx:y:2017:i:3a:p:538-553 is not listed on IDEAS
    3. Murharsito & Fitri Ella Fauziah & Emanuel Kristijadi & Rr. Iramani, 2017. "Provincial corruption and local development bank performance," Economic Journal of Emerging Markets, Universitas Islam Indonesia, vol. 9(1), pages 66-73, April.

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    More about this item

    Keywords

    Economic development; corruption; low income countries; human development index;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D31 - Microeconomics - - Distribution - - - Personal Income and Wealth Distribution
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

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