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Determinants of corruption in developing countries

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  • Chaudhry, Mumtaz Anwar
  • Shabbir, Ghulam

Abstract

Corruption is not a new phenomenon; we are living with it since the birth of government's institutions. Corruption has two dimensions; public sector corruption and private sector corruption. The public sector corruption means, misuse of public office for private benefits. For cross country analysis, public sector corruption is mainly focused. In this study, we have analyzed the 41 developing countries to investigate the determinants of corruption. Corruption determinants are sub-divided into economic determinants and non-economic determinants. The economic determinants include economic freedom, globalization, level of education, distribution of income and average level of income. The non-economic determinants list consists on press freedom, democracy and share of population affiliated with particular religion. The empirical findings of the study indicates that; all economic determinants are negatively related to the perceived level of corruption except distribution of income and non-economic determinants are not significantly explaining the variations in the level of corruption. This shows that the socio-political and religious norms are so weak that they can not affect the corruption level in these countries. The contribution of religion in people's practical life is very little, so the cultural values of developing countries are not religion based. Therefore, perceived level of corruption is not affected by the religion. This study concluded that government should focus the economic factors to curb the level of corruption. --

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Bibliographic Info

Paper provided by Hamburg Institute of International Economics (HWWI) in its series HWWI Research Papers with number 2-11.

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Date of creation: 2007
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Handle: RePEc:zbw:hwwirp:2-11

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  1. Daniel Lederman & Norman V. Loayza & Rodrigo R. Soares, 2005. "Accountability And Corruption: Political Institutions Matter," Economics and Politics, Wiley Blackwell, vol. 17, pages 1-35, 03.
  2. International Monetary Fund, 1997. "Corruption and the Rate of Temptation - Do Low Wages in the Civil Service Cause Corruption?," IMF Working Papers 97/73, International Monetary Fund.
  3. Fisman, Raymond & Gatti, Roberta, 2000. "Decentralization and corruption - evidence across countries," Policy Research Working Paper Series 2290, The World Bank.
  4. Stephen Knack & Omar Azfar, 2003. "Trade intensity, country size and corruption," Economics of Governance, Springer, vol. 4(1), pages 1-18, 04.
  5. Bonaglia, Federico & Braga de Macedo, Jorge & Bussolo, Maurizio, 2001. "How Globalization Improves Governance," CEPR Discussion Papers 2992, C.E.P.R. Discussion Papers.
  6. Guillaume R. Fréchette, 2006. "Panel Data Analysis of the Time-Varying Determinants of Corruption," CIRANO Working Papers 2006s-28, CIRANO.
  7. Gurgur, Tugrul & Shah, Anwar, 2005. "Localization and corruption : panacea or pandora's box?," Policy Research Working Paper Series 3486, The World Bank.
  8. Martin Paldam, . "Corruption and Religion. Adding to the Economic Model?," Economics Working Papers 1999-21, School of Economics and Management, University of Aarhus.
  9. James E. Alt & David Dreyer Lassen, 2002. "The Political Economy of Institutions and Corruption in American States," EPRU Working Paper Series 02-16, Economic Policy Research Unit (EPRU), University of Copenhagen. Department of Economics.
  10. Herzfeld, Thomas & Weiss, Christoph, 2003. "Corruption and legal (in)effectiveness: an empirical investigation," European Journal of Political Economy, Elsevier, vol. 19(3), pages 621-632, September.
  11. Abdiweli M. Ali & Hoden Said Isse, 2003. "Determinants of Economic Corruption: A Cross-Country Comparison," Cato Journal, Cato Journal, Cato Institute, vol. 22(3), pages 449-466, Winter.
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Cited by:
  1. Kodila Tedika, Oasis, 2012. "Empirical Survey on the Causes of the Corruption
    [Aperçu empirique sur les causes de la corruption]    ," MPRA Paper 41484, University Library of Munich, Germany.
  2. Kodila-Tedika, Oasis, 2012. "Marriage and Corruption : An empirical analysis on european data," MPRA Paper 40311, University Library of Munich, Germany.
  3. Yongqiang Gao, 2011. "Government Intervention, Perceived Benefit, and Bribery of Firms in Transitional China," Journal of Business Ethics, Springer, vol. 104(2), pages 175-184, December.
  4. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
    [Consequences of Corruption : Empirical survey]    ," MPRA Paper 41482, University Library of Munich, Germany.

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