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Corruption and the Military in Politics: Theory and Evidence from around the World

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  • Majeed, Muhammad Tariq
  • MacDonald, Ronald

Abstract

Recent theoretical developments and case study evidence suggests a relationship between the military in politics and corruption. This study contributes to this literature by analyzing theoretically and empirically the role of the military in politics and corruption for the first time. By drawing on a cross sectional and panel data set covering a large number of countries, over the period 1984-2007, and using a variety of econometric methods substantial empirical support is found for a positive relationship between the military in politics and corruption. In sum, our results reveal that a one standard deviation increase in the military in politics leads to a 0.22 unit increase in corruption index. This relationship is shown to be robust to a variety of specification changes, different econometric techniques, different sample sizes, alternative corruption indices and the exclusion of outliers. This study suggests that the explanatory power of the military in politics is at least as important as the conventionally accepted causes of corruption, such as economic development.

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File URL: http://repo.sire.ac.uk/handle/10943/222
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Bibliographic Info

Paper provided by Scottish Institute for Research in Economics (SIRE) in its series SIRE Discussion Papers with number 2010-91.

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Date of creation: 2010
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Handle: RePEc:edn:sirdps:222

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Keywords: corruption; military in politics; cross sectional; panel data;

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References

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  1. Jérôme Héricourt & Sandra Poncet, 2007. "FDI and credit constraints : firm level evidence in China," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00144621, HAL.
  2. Brown, James R. & Petersen, Bruce C., 2009. "Why has the investment-cash flow sensitivity declined so sharply? Rising R&D and equity market developments," Journal of Banking & Finance, Elsevier, vol. 33(5), pages 971-984, May.
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Cited by:
  1. Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Financial Development and Government: Evidence from Low-Income Developing Countries," MPRA Paper 50296, University Library of Munich, Germany.
  2. Majeed, Dr. Muhammad Tariq, 2013. "Inequality, Trade and Development: Evidence from Developing Countries," MPRA Paper 50337, University Library of Munich, Germany.
  3. Muhammad Tariq Majeed & Ronald MacDonald, 2011. "Corruption and financial intermediation in a panel of regions: cross-border effects of corruption," Working Papers 2011_18, Business School - Economics, University of Glasgow.

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