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Corruption, institutions and regulation

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  • Michael Breen
  • Robert Gillanders

Abstract

We analyze the effects of corruption and institutional quality on the quality of business regulation. Our key findings indicate that corruption negatively affects the quality of regulation and that general institutional quality is insignificant once corruption is controlled for. These findings hold over a number of specifications which include additional exogenous historical and geographic controls. The findings imply that policy makers can focus on curbing corruption to improve regulation, over wider institutional reform. Copyright Springer-Verlag 2012

Suggested Citation

  • Michael Breen & Robert Gillanders, 2012. "Corruption, institutions and regulation," Economics of Governance, Springer, vol. 13(3), pages 263-285, September.
  • Handle: RePEc:spr:ecogov:v:13:y:2012:i:3:p:263-285
    DOI: 10.1007/s10101-012-0111-0
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