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The Big Pattern of Corruption. Economics, culture and the Seesaw Dynamics

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Author Info
Martin Paldam () (Department of Economics, University of Aarhus, Denmark)
Abstract

The 1998 corruption index from Transparency International is explained by two types of cross-country models: The economic model uses the level and growth of real income per capita, the rate of inflation and the amount of economic freedom. The cultural model uses a set of dummies for cultural areas and the level of democracy. It is demonstrated that both models work and have a strong interaction. The strongest factor reducing corruption is the transition from poor to rich. The (relative) difference between GDP-levels within the same cultural area is smaller than the (relative) difference between the levels of corruption, so the interaction points to something entirely different from culture, the inherent seesaw dynamics of corruption.

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Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 1999-11.

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Handle: RePEc:aah:aarhec:1999-11

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Related research
Keywords: Corruption economic transition dynamics of cross sections

Find related papers by JEL classification:
K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other
O11 - Economic Development, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
P50 - Economic Systems - - Comparative Economic Systems - - - General

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  1. Huther, Jeff & Shah, Anwar, 2000. "Anti-corruption policies and programs : a framework for evaluation," Policy Research Working Paper Series 2501, The World Bank. [Downloadable!]
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