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Corruption and political stability: Does the youth bulge matter?

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  • Farzanegan, Mohammad Reza
  • Witthuhn, Stefan

Abstract

This study shows that the relative size of the youth bulge matters in how corruption affects the internal stability of a political system. Using panel data covering the 1984–2012 period for more than 100 countries, we find that the effect of corruption on political stability depends on the youth bulge. Corruption is a destabilizing factor for political systems when the share of the youth population in the adult population exceeds a critical level of approximately 20%. The moderating effect of the youth bulge in the stability–corruption nexus is robust, controlling for country and year fixed effects, a set of control variables that may affect internal political stability, an alternative operationalization of the youth bulge, corruption, and a dynamic panel estimation method.

Suggested Citation

  • Farzanegan, Mohammad Reza & Witthuhn, Stefan, 2017. "Corruption and political stability: Does the youth bulge matter?," European Journal of Political Economy, Elsevier, vol. 49(C), pages 47-70.
    • Handle: RePEc:eee:poleco:v:49:y:2017:i:c:p:47-70
    DOI: 10.1016/j.ejpoleco.2016.12.007
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    More about this item

    Keywords

    D73; D74; E02; H56; J11; Demographic transition; Youth bulge; Political stability; Corruption;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • E02 - Macroeconomics and Monetary Economics - - General - - - Institutions and the Macroeconomy
    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • J11 - Labor and Demographic Economics - - Demographic Economics - - - Demographic Trends, Macroeconomic Effects, and Forecasts

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