IDEAS home Printed from
   My bibliography  Save this article

A Note On The Relationship Between Corruption And Government Revenue


  • Jinyoung Hwang

    () (The Education & Research Group for an Open Korean Economic System, Korea University)


This paper empirically traces out the impacts of corruption on government revenue. The total amount of government revenue decreases as corruption reduces tax revenues if it contributes to tax evasion, improper tax exemptions or weak tax administration. In addition, corruption may distort the composition of government revenue: that is, a country with a higher level of corruption increases the proportion of international tax revenue rather than domestic tax one as the source of government revenue. Using cross-national evidence, it is identified that several corruption indices are positively and significantly associated with the taxes on international trade over current government revenue. Moreover, corruption is negatively and significantly related to the domestic tax revenue as well as total amount of government revenue over GDP.

Suggested Citation

  • Jinyoung Hwang, 2002. "A Note On The Relationship Between Corruption And Government Revenue," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 27(2), pages 161-177, December.
  • Handle: RePEc:jed:journl:v:27:y:2002:i:2:p:161-177

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Hwang, Jinyoung & Jung, Kun-Oh, 2002. "Initial asset inequality and tariff formation: a cross-country analysis," Economics Letters, Elsevier, vol. 76(3), pages 405-410, August.
    2. Elhanan Helpman, 1995. "Politics and Trade Policy," NBER Working Papers 5309, National Bureau of Economic Research, Inc.
    3. Hindriks, Jean & Keen, Michael & Muthoo, Abhinay, 1999. "Corruption, extortion and evasion," Journal of Public Economics, Elsevier, vol. 74(3), pages 395-430, December.
    4. Spilimbergo, Antonio & Londono, Juan Luis & Szekely, Miguel, 1999. "Income distribution, factor endowments, and trade openness," Journal of Development Economics, Elsevier, vol. 59(1), pages 77-101, June.
    5. Jinyoung Hwang & Neville Jiang & Ping Wang, 2007. "Collusion And Overlending," Economic Inquiry, Western Economic Association International, vol. 45(4), pages 691-707, October.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.

    Cited by:

    1. Azmat Gani, 2012. "The Relationship Between Good Governance And Carbon Dioxide Emissions: Evidence From Developing Economies," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 37(1), pages 77-93, March.
    2. Samir Abdelhafidh, 2014. "External Debt and Economic Growth in Tunisia," Panoeconomicus, Savez ekonomista Vojvodine, Novi Sad, Serbia, vol. 61(6), pages 669-689, December.
    3. Joao Tovar Jalles, 2011. "The Impact Of Democracy And Corruption On The Debt-Growth Relationship In Developing Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(4), pages 41-72, December.
    4. Björn Frank, 2004. "Zehn Jahre empirische Korruptionsforschung," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(2), pages 184-199.
    5. repec:eco:journ1:2017-05-25 is not listed on IDEAS
    6. Libor Dušek & Andreas Ortman & Lubomír Lízal, 2005. "Understanding Corruption and Corruptibility Through Experiments," Prague Economic Papers, University of Economics, Prague, vol. 2005(2), pages 147-162.
    7. Mohamed Dridi, 2014. "Corruption and Education: Empirical Evidence," International Journal of Economics and Financial Issues, Econjournals, vol. 4(3), pages 476-493.
    8. Jana Krajcova & Andreas Ortmann, 2008. "Testing Leniency Programs Experimentally: The Impact of “Natural” Framing," CERGE-EI Working Papers wp372, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    9. Phimwalun Srithongkul & Pathairat Pastpipatkul, 2013. "Impacts of economic variables and the corruption perception index on human development," The Empirical Econometrics and Quantitative Economics Letters, Faculty of Economics, Chiang Mai University, vol. 2(1), pages 71-78, March.
    10. Heechul Min, 2011. "Former Officials and Subsidies to State-owned Enterprises," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 36(2), pages 1-13, June.
    11. repec:spr:comaot:v:23:y:2017:i:2:d:10.1007_s10588-016-9227-z is not listed on IDEAS
    12. Jana Krajcova, 2008. "Testing Leniency Programs Experimentally: The Impact of Change in Parameterization," CERGE-EI Working Papers wp370, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    13. Thebeth Rufaro Mukwembi & Simon Mukwembi, 0. "Corruption and its detection: a graph-theoretic approach," Computational and Mathematical Organization Theory, Springer, vol. 0, pages 1-8.

    More about this item


    Corruption; Government Revenue; Tax Revenue; International Tax;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:jed:journl:v:27:y:2002:i:2:p:161-177. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sung Y. Park). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.