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Causes and consequences of corruption: An overview of empirical results

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  • Enste, Dominik
  • Heldman, Christina

Abstract

Corruption is a main threat in many countries around the world. Therefore, the causes and consequences of corruption are analyzed in various empirical studies. Since the results are quite mixed, we have summarized the findings of the central empirical literature from the last two decades for a comprehensive overview. Main causes for corruption are according to the studies (1) the size and structure of governments, (2) the democracy and the political system, (3) the quality of institutions, (4) economic freedom/openness of economy, (5) salaries of civil service, (6) press freedom and judiciary, (7) cultural determinants, (8) percentage of women in the labor force and in parliament (9) colonial heritage and (10) the endowment of natural resources. Corruption has an impact on (1) investment in general, (2) foreign direct investment and capital inflows, (3) foreign trade and aid, (4) official growth, (5) inequality, (6) government expenditure and services, and (7) shadow economy and crime.

Suggested Citation

  • Enste, Dominik & Heldman, Christina, 2017. "Causes and consequences of corruption: An overview of empirical results," IW-Reports 2/2017, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    • Handle: RePEc:zbw:iwkrep:22017
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    Cited by:

    1. Mamdouh Abdulaziz Saleh Al-Faryan & Nikhil Chandra Shil, 2023. "Governance as an Interplay between Corruption and Polity: Conceptualizing from a National Perspective," Economies, MDPI, vol. 11(2), pages 1-18, February.
    2. Paweł Dec & Jacek Wysocki, 2022. "In Search of Non-Obvious Relationships between Greenhouse Gas or Particulate Matter Emissions, Renewable Energy and Corruption," Energies, MDPI, vol. 15(4), pages 1-20, February.
    3. Rita Remeikienė & Ligita Gasparėnienė & Viktoras Chadyšas & Evaldas Raistenskis, 2020. "Links between corruption and quality of life in European Union," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2664-2675, June.
    4. LABED Lazhar & BOUCENNA Mohammed Ridha & BENZOUAI Mohamed Cherif, 2022. "Analyzing The Impact Of Corruption On Income Levels Disparity Between Countries," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 160-175, August.
    5. Legaspe Francisco, 2023. "Effect of corruption on economic growth," Asociación Argentina de Economía Política: Working Papers 4663, Asociación Argentina de Economía Política.
    6. Enste, Dominik & Acht, Martin, 2018. "Democratic support and corruption: Lessons from East Europe," IW-Reports 44/2018, Institut der deutschen Wirtschaft (IW) / German Economic Institute.
    7. Roberto Dell’Anno, 2020. "Corruption around the world: an analysis by partial least squares—structural equation modeling," Public Choice, Springer, vol. 184(3), pages 327-350, September.
    8. Olalekan C. Okunlola & Olumide A. Ayetigbo, 2022. "Economic Freedom and Human Development in ECOWAS: Does Political-Institutional Strength Play a Role?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 1751-1785, September.

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