Corruption and Income
This paper examines whether countries with higher income have less corruption. Earlier studies, utilizing pure cross-section regressions, establish a strong association between income and corruption but do not consider factors (presumably, long-run historical factors) that simultaneously could affect both variables. Employing fixed effects methodologies and thus controlling for such factors, we show that the statistical association between income and corruption disappears.
Volume (Year): 32 (2012)
Issue (Month): 2 ()
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