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Inherent effects of corruption on the erosion of political trust in developing countries:Evidence from Ghana

Author

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  • Julia Pullbeck

    (School of Economics, University of Adelaide)

  • Firmin Doko Tchatoka

    (School of Economics, University of Adelaide)

Abstract

A growing literature highlighting the inherent effects of corruption on the erosion of political trust has emerged recently, but few studies focus on Sub-Saharan African countries. The paper uses an identification strategy based on a control function approach, along with individual level data to disentangle the nexus between perceived corruption and political trust in Ghana. Results show that perceived corruption substantially erodes political trust, whilst political trust only slightly impacts people’s perception of corruption. In essence, perceived corruption propagates a climate of mistrust in Ghana. Moreover, heterogeneous effects on these relationships are observed across regions, ethnic groups, gender and education. For example, men tend to perceive the presidency office as corrupt whilst trusting the president, thereby repudiating the general view that individuals who trust more automatically perceive less corruption.

Suggested Citation

  • Julia Pullbeck & Firmin Doko Tchatoka, 2020. "Inherent effects of corruption on the erosion of political trust in developing countries:Evidence from Ghana," School of Economics and Public Policy Working Papers 2020-01, University of Adelaide, School of Economics and Public Policy.
  • Handle: RePEc:adl:wpaper:2020-01
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    File URL: https://media.adelaide.edu.au/economics/papers/doc/wp2020-01.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Corruption; Mistrust; Simultaneity; Ghana; Presidency office; Control function approach.;
    All these keywords.

    JEL classification:

    • O17 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Formal and Informal Sectors; Shadow Economy; Institutional Arrangements
    • N27 - Economic History - - Financial Markets and Institutions - - - Africa; Oceania
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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