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Corruption and Religion. Adding to the Economic Model?

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  • Martin Paldam

    () (Department of Economics, University of Aarhus, Denmark)

Abstract

The cross-country pattern in the 1998 corruption index from Transparency International is explained by a mixed economic-cultural model of corruption: (1) The economic model uses the level of real income per capita, the rate of inflation and the level of economic freedom. (2) The cultural model uses a set of variables giving the shares of 11 religions in each country, and the Herfindahl-index for religious diversity. The economic model explains the larger part of the variance, but the religions prove to have considerable additional explanatory power. The largest divide is within the Christians. By far the least corrupt are the Protestant and Anglicans, while Catholics, and other > Christians, deviate to the other side - as do Buddhists. Further, it is demon- strated that the more religiously divided a country, the less corrupt it is.

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Bibliographic Info

Paper provided by School of Economics and Management, University of Aarhus in its series Economics Working Papers with number 1999-21.

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Length: 25
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Handle: RePEc:aah:aarhec:1999-21

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Web page: http://www.econ.au.dk/afn/

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Keywords: Corruption; economic transition; religion;

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