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Corruption and Democracy

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  • Michael T. Rock

Abstract

What is the impact of democracy on corruption? In most models, analysts assume a negative relationship, with more democracy leading to less corruption. But recent theoretical developments and case evidence support an inverted U relationship between corruption and democracy. By drawing on a panel data set covering a large number of countries between 1996 and 2003, substantial empirical support is found for an inverted U relationship between democracy and corruption. The turning point in corruption occurs rather early in the life of new democracies and at rather low per capita incomes.

Suggested Citation

  • Michael T. Rock, 2007. "Corruption and Democracy," Working Papers 55, United Nations, Department of Economics and Social Affairs.
    • Handle: RePEc:une:wpaper:55
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    File URL: http://www.un.org/esa/desa/papers/2007/wp55_2007.pdf
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    2. 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, vol. 33(4), pages 636-648, July.
    3. Meghna Dutta, 2018. "Globalisation, Corruption and Women Empowerment," Economic Papers, The Economic Society of Australia, vol. 37(3), pages 327-343, September.
    4. Anton M. Pillay & Jeremiah Madzimure, 2021. "Democracy in Decline: Three Global Trends and How They Highlight the Case of “American Exceptionalism” and the Need to Re-Think IR Theory," Eurasian Journal of Social Sciences, Eurasian Publications, vol. 9(3), pages 138-149.
    5. Dutta, Nabamita & Roy, Sanjukta, 2016. "The interactive impact of press freedom and media reach on corruption," Economic Modelling, Elsevier, vol. 58(C), pages 227-236.
    6. Andreas Assiotis & Kevin Sylwester, 2015. "Does Democracy Promote The Rule Of Law?," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 40(1), pages 63-92, March.
    7. Libman, Alexander, 2008. "Democracy and growth: is the effect non-linear?," MPRA Paper 17795, University Library of Munich, Germany.

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    More about this item

    Keywords

    corruption; electoral democracy; consolidated democracy; rule of law; government effectiveness;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government
    • H77 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Intergovernmental Relations; Federalism
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law

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