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Empirical determinants of corruption: A sensitivity analysis

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  • Danila Serra

Abstract

Many variables have been proposed by past studies as significant determinants of corruption. This paper asks if their estimated impact on corruption is robust to alteration of the information set. A Global Sensitivity Analysis, based on the Leamer`s Extreme-Bounds Analysis give a clear answer: five variables are robustly related to corruption. Corruption is lower in richer countries, where democratic institutions have been preserved for a long continuous period, and the population is mainly Protestant. Corruption is instead higher where political instabiity is a major problem. Finally, a country`s colonial heritage appears to be a significant determinant of present corruption.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number GPRG-WPS-012.

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Date of creation: 01 Feb 2005
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Handle: RePEc:oxf:wpaper:gprg-wps-012

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Keywords: Corruption; Determinants; Sensitivity; Robustness; Extreme-Bounds;

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