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The impact of corruption crimes on regional financial market development: A provincial panel analysis of the mediating effect based on the efficiency of the rule of law

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  • Guo, Enze

Abstract

This study examines the impact of corruption crimes on regional financial market development, further analyzing the mediating role of the rule of law efficiency and the heterogeneous effects of income inequality. Utilizing provincial panel data from 2003 to 2023, the study finds that: (1) corruption crimes significantly inhibit regional financial market development, a finding that is consistently verified across various regression models and robustness tests; (2) rule of law efficiency serves as a mediator between corruption crimes and financial market development, with corruption crimes further affecting financial market growth by reducing rule of law efficiency; (3) income inequality exhibits heterogeneous effects on the impact of corruption crimes on financial market development, with regions exhibiting greater income disparity experiencing a more pronounced negative effect, whereas regions with lower income disparity show a lesser impact.

Suggested Citation

  • Guo, Enze, 2025. "The impact of corruption crimes on regional financial market development: A provincial panel analysis of the mediating effect based on the efficiency of the rule of law," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014904
    DOI: 10.1016/j.frl.2025.108235
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    References listed on IDEAS

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