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The case for human development: a cross-country analysis of corruption perceptions

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  • Peyton, Kyle
  • Belasen, Ariel

Abstract

Economic studies have demonstrated, both empirically and theoretically, that higher levels of human development (HD) and economic freedom (EF) are associated with lower levels of perceived corruption. This study separately examines the impact of human development and economic freedom on perceived levels of corruption across more than one hundred countries using a novel approach that greatly reduces multicollinear bias in the model. The results from this study confirm that both HD and EF are significant predictors of corruption perception levels. Furthermore, an increase in either HD or EF corresponds to a reduction in corruption perception. When evaluated separately, however, increases in human development are shown to correspond to greater reductions in corruption perception than economic freedom. This is demonstrated with an OLS regression using data collected from a single year and a number of panel estimates that utilize data from multiple years.

Suggested Citation

  • Peyton, Kyle & Belasen, Ariel, 2010. "The case for human development: a cross-country analysis of corruption perceptions," MPRA Paper 31385, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:31385
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    References listed on IDEAS

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    Cited by:

    1. Stojcic, Nebojsa & Suman Tolic, Meri, 2018. "Direct and indirect effects of fiscal decentralisation on economic growth," MPRA Paper 108762, University Library of Munich, Germany, revised May 2019.
    2. Nerajda Feruni & Eglantina Hysa & Mirela Panait & Irina Gabriela Rădulescu & Alina Brezoi, 2020. "The Impact of Corruption, Economic Freedom and Urbanization on Economic Development: Western Balkans versus EU-27," Sustainability, MDPI, vol. 12(22), pages 1-22, November.

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    More about this item

    Keywords

    Human Development; Economic Freedom; Corruption; International; Cross-Country; Residual Analysis;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General
    • F5 - International Economics - - International Relations, National Security, and International Political Economy
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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