Are larger countries really more corrupt?
AbstractSeveral authors claim to provide evidence that government corruption is less severe in small than in large countries. The authors demonstrate that this relationship is an artifact of sample selection. Most corruption indicators provide ratings only for the countries in which multi-national investors have the greatest interest. These tend to include almost all large nations but, among small nations, only those that are well governed. The authors find that the relationship between corruption and country size disappears when one uses either a new corruption indicator with substantially increased country coverage or an alternative corruption indicator that covers all World Bank borrowers without regard to country size. They also show that the relationship between corruption and trade intensity--a variable strongly related to population--disappears when samples less subject to selection bias are used.
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Bibliographic InfoPaper provided by The World Bank in its series Policy Research Working Paper Series with number 2470.
Date of creation: 30 Nov 2000
Date of revision:
National Governance; Governance Indicators; Corruption&Anitcorruption Law; Public Sector Corruption&Anticorruption Measures; Poverty Monitoring&Analysis;
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