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A Spatial Dynamic Panel Analysis of Corruption

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  • Hermann Pythagore Pierre Donfouet

    (CREM CNRS, UMR 6211, University of Rennes 1, France)

  • P. Wilner Jeanty

    (Kinder Institute for Urban Research & Hobby Center for the Study of Texas, Rice University, Texas, USA)

  • Eric Malin

    (CREM CNRS, UMR 6211, University of Rennes 1, France)

Abstract

Previous works on the determinants of corruption seldom addressed cross-border spillover of corruption in cross-country panel studies. In this paper, we report evidence of spatial spillover of corruption by means of spatial dynamic panel model. The results confirm that perceived levels of corruption at the country level are statistically and positively related to those in neighbouring countries. Furthermore, the findings also suggest that the parameters estimates derived from the spatial dynamic panel are more precise compared to the system GMM.

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Bibliographic Info

Paper provided by Center for Research in Economics and Management (CREM), University of Rennes 1, University of Caen and CNRS in its series Economics Working Paper Archive (University of Rennes 1 & University of Caen) with number 201324.

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Date of creation: Jul 2013
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Handle: RePEc:tut:cremwp:201324

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Keywords: Corruption; spatial dynamic panel;

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