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Fighting African corruption when existing corruption-control levels matter in a dynamic cultural setting

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  • Asongu Simplice

    ()
    (Yaoundé/Cameroun)

Abstract

Abstract Purpose – This paper assesses the determinants of corruption-control with freedom dynamics (economic, political, press and trade), government quality and a plethora of socio-economic factors in 46 African countries using updated data. Design/methodology/approach – A quantile regression approach is employed while controlling for the unobserved heterogeneity. Principal component analysis is also used to reduce the dimensions of highly correlated variables. Findings – With the legal origin fundamental characteristic, the following findings have been established. (1) While political freedom increases corruption-control (CC) in a bottom quantile of English common law countries, there is no such evidence in their French civil law counterparts. (2) Government quality consistently improves CC across all quantiles in English common law countries but fails to exert the same effect in middle quantiles of French civil law countries. (3) Economic freedom ameliorates CC only in common law countries with low existing CC levels (bottom quantiles). (4) We find no significant evidence of a positive ‘press freedom’-CC nexus and having the status of Low income English common law (French civil law) countries decreases (increases) CC. From a religious domination scenario, we also find the following. (1) Political and trade freedoms only reduce CC in Christian dominated countries while press freedom has a mitigation effect in both religious cultures (though more consistent across quantiles of Christian-oriented countries). (2) Government quality is more pro-CC in Christian than in Muslim-dominated countries. (3) While economic freedom has a scanty negative nexus with CC in Christian-oriented countries, the effect is positive in their Muslim-dominated counterparts. (4) Having a low-income status in countries with Christian common law tradition improves CC. Originality/value – We complement the literature on the fight against corruption in Africa by employing recently documented additional factors that should be considered in corruption studies.

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File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Fighting-corruption-with-cultural-dynamics.pdf
File Function: Revised version, 2013
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Bibliographic Info

Paper provided by African Governance and Development Institute. in its series Working Papers with number 13/028.

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Length: 23
Date of creation: Sep 2013
Date of revision:
Publication status: Forthcoming in International Journal of Social Economics
Handle: RePEc:agd:wpaper:13/028

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Keywords: Corruption; Freedom; Government quality; Quantile regression; Africa;

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References

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  1. Asongu, Simplice A., 2013. "On the effectiveness of foreign aid in institutional quality," European Economic Letters, European Economics Letters Group, European Economics Letters Group, vol. 2(1), pages 12-19.
  2. Saha, Shrabani & Gounder, Rukmani & Su, Jen-Je, 2009. "The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis," Economics Letters, Elsevier, Elsevier, vol. 105(2), pages 173-176, November.
  3. Simplice A, Asongu, 2012. "Fighting software piracy in Africa: how do legal origins and IPRs protection channels matter?," MPRA Paper 42766, University Library of Munich, Germany.
  4. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert W., 1998. "Law and Finance," Scholarly Articles 3451310, Harvard University Department of Economics.
  5. Okada, Keisuke & Samreth, Sovannroeun, 2011. "The effect of foreign aid on corruption: A quantile regression approach," MPRA Paper 27969, University Library of Munich, Germany.
  6. Lalountas, Dionisios A. & Manolas, George A. & Vavouras, Ioannis S., 2011. "Corruption, globalization and development: How are these three phenomena related?," Journal of Policy Modeling, Elsevier, Elsevier, vol. 33(4), pages 636-648, July.
  7. Asongu Simplice, 2011. "Government Quality Determinants of Stock Market Performance in African Countries," Working Papers, African Governance and Development Institute. 11/019, African Governance and Development Institute..
  8. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, Elsevier, vol. 76(3), pages 399-457, June.
  9. Rafael LaPorta & Florencio Lopez-de-Silanes & Andrei Shleifer & Robert Vishny, . "The Quality of Government," Working Paper 19452, Harvard University OpenScholar.
  10. Simplice A, Asongu & Oasis, Kodila-Tedika, 2013. "State fragility, rent seeking and lobbying: evidence from African data," MPRA Paper 44066, University Library of Munich, Germany.
  11. Billger, Sherrilyn M. & Goel, Rajeev K., 2009. "Do existing corruption levels matter in controlling corruption?: Cross-country quantile regression estimates," Journal of Development Economics, Elsevier, Elsevier, vol. 90(2), pages 299-305, November.
  12. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 35(3), pages 1320-1346, September.
  13. Simplice A. Asongu, 2013. "Fighting Corruption when Existing Corruption-Control Levels Count: What do Wealth-Effects Tell us in Africa?," Institutions and Economies (formerly known as International Journal of Institutions and Economies), Faculty of Economics and Administration, University of Malaya, Faculty of Economics and Administration, University of Malaya, vol. 5(3), pages 53-74, October.
  14. Asongu Simplice, 2012. "On the effect of foreign aid on corruption," Working Papers, African Governance and Development Institute. 12/031, African Governance and Development Institute..
  15. Henry Kaiser, 1974. "An index of factorial simplicity," Psychometrika, Springer, Springer, vol. 39(1), pages 31-36, March.
  16. Simplice A, Asongu, 2012. "Harmonizing IPRs on Software Piracy: Empirics of Trajectories in Africa," MPRA Paper 42466, University Library of Munich, Germany.
  17. Simplice A Asongu & Jellal Mohamed, 2013. "On the channels of foreign aid to corruption," Economics Bulletin, AccessEcon, vol. 33(3), pages 2191-2201.
  18. Kyle Peyton & Ariel R. Belasen, 2012. "Corruption in Emerging and Developing Economies: Evidence from a Pooled Cross-Section," Emerging Markets Finance and Trade, M.E. Sharpe, Inc., M.E. Sharpe, Inc., vol. 48(2), pages 29-43, March.
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