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Does social media reduce corruption?

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  • Jha, Chandan Kumar
  • Sarangi, Sudipta

Abstract

In this paper we study the relationship between multi-way means of communication and corruption by exploring the link between social media and corruption. Using a cross-country analysis of over 150 countries, we document a robust and statistically significant negative relationship between Facebook penetration (a proxy for social media) and corruption. A falsification test for the relationship between Facebook penetration and corruption is also reported. We find that the relationship between Facebook penetration and corruption is strongest for the set of countries with low press freedom. Moreover, we find that social media is complementary to press freedom in regards to its association with corruption Finally, our findings also confirm the negative correlation between internet penetration and corruption.

Suggested Citation

  • Jha, Chandan Kumar & Sarangi, Sudipta, 2017. "Does social media reduce corruption?," Information Economics and Policy, Elsevier, vol. 39(C), pages 60-71.
    • Handle: RePEc:eee:iepoli:v:39:y:2017:i:c:p:60-71
    DOI: 10.1016/j.infoecopol.2017.04.001
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    More about this item

    Keywords

    Corruption; Transparency of information; Facebook; Internet; Social media; Press freedom;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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