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The Impact of Poverty on Corruption

Author

Listed:
  • Mustafa NVER

    (University of K r kkale, Faculty of Economics and Administrative Sciences, Department of Public Finance, K r kkale, Turkey)

  • Julide Yal nkaya KOYUNCU

    (University of Bilecik Seyh Edebali, Faculty of Economics and Administrative Sciences, Department of Economics, Bilecik, Turkey)

Abstract

This paper examines the effect of poverty on corruption using annual unbalanced panel data analysis on 154 countries from 2000 to 2013. In the models, we use corruption measures from three alternative sources as a dependent variable while independent variables are five different poverty measures. In addition, this study has some control variables, such as foreign direct investment (FDI), trade openness, inflation rate and democracy level. According to empirical results, all poverty variables and inflation rates have statistically significant and positive effects on corruption, while FDI, trade openness and democracy levels have statistically significant and negative effects.

Suggested Citation

  • Mustafa NVER & Julide Yal nkaya KOYUNCU, 2016. "The Impact of Poverty on Corruption," Journal of Economics Library, EconSciences Journals, vol. 3(4), pages 632-642, December.
    • Handle: RePEc:cvv:journ5:v:3:y:2016:i:4:p:632-642
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    Keywords

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    JEL classification:

    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior

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