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Corruption in transition economies: Effects of government size, country size and economic reforms

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  • Rajeev Goel

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  • Jelena Budak

Abstract

This paper uses annual pooled data over 1998–2002 for transition countries to examine whether government size or country size matters more in its impact on corruption; and whether piecemeal reforms or comprehensive transition reforms are desirable for corruption reduction. Our results show that greater economic prosperity leads to lower corruption, and contrary to findings for other nations, a bigger government size seems to reduce corruption in transition nations. The geographic size of a country is positive and significant, suggesting that more spread out countries would have a harder time controlling corruption. Comprehensive transition reforms might work best at corruption reduction. Copyright Springer 2006

Suggested Citation

  • Rajeev Goel & Jelena Budak, 2006. "Corruption in transition economies: Effects of government size, country size and economic reforms," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 30(2), pages 240-250, June.
  • Handle: RePEc:spr:jecfin:v:30:y:2006:i:2:p:240-250
    DOI: 10.1007/BF02761489
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    References listed on IDEAS

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    1. Rajeev K. Goel & Michael A. Nelson, 2005. "Economic Freedom Versus Political Freedom: Cross-Country Influences On Corruption ," Australian Economic Papers, Wiley Blackwell, vol. 44(2), pages 121-133, June.
    2. Gary S. Becker, 1974. "Crime and Punishment: An Economic Approach," NBER Chapters,in: Essays in the Economics of Crime and Punishment, pages 1-54 National Bureau of Economic Research, Inc.
    3. Lambsdorff, Johann Graf, 2002. "Making corrupt deals: contracting in the shadow of the law," Journal of Economic Behavior & Organization, Elsevier, vol. 48(3), pages 221-241, July.
    4. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    5. Toke S. Aidt, 2003. "Economic analysis of corruption: a survey," Economic Journal, Royal Economic Society, vol. 113(491), pages 632-652, November.
    6. Pranab Bardhan, 1997. "Corruption and Development: A Review of Issues," Journal of Economic Literature, American Economic Association, vol. 35(3), pages 1320-1346, September.
    7. Goel, Rajeev K & Nelson, Michael A, 1998. "Corruption and Government Size: A Disaggregated Analysis," Public Choice, Springer, vol. 97(1-2), pages 107-120, October.
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    Cited by:

    1. repec:bla:jecsur:v:32:y:2018:i:2:p:335-356 is not listed on IDEAS
    2. Rajeev K. Goel, 2012. "Business regulation and taxation: effects on cross-country corruption," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 15(3), pages 223-242, September.
    3. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    4. Claudia Trentini & Malinka Koparanova, 2013. "Corruption and entrepreneurship: does gender matter?," ECE Discussion Papers Series 2013_1, UNECE.
    5. Eiji Yamamura, 2012. "Government Size and Trust," Review of Social Economy, Taylor & Francis Journals, vol. 70(1), pages 31-56, December.
    6. Valerija Botrić & Ljiljana Božić, 2015. "Innovators' vs Non-innovators' perceptions of corruption in European post-transition economies," International Journal of Business and Economic Sciences Applied Research (IJBESAR), Eastern Macedonia and Thrace Institute of Technology (EMATTECH), Kavala, Greece, vol. 8(3), pages 47-58, December.
    7. repec:ite:iteeco:180100 is not listed on IDEAS
    8. Neiva de Figueiredo, João, 2013. "Are corruption levels accurately identified? The case of U.S. states," Journal of Policy Modeling, Elsevier, vol. 35(1), pages 134-149.
    9. Frye, Timothy M. & Iwasaki, Ichiro, 2011. "Government directors and business–state relations in Russia," European Journal of Political Economy, Elsevier, vol. 27(4), pages 642-658.
    10. Bosco, Bruno, 2016. "Old and new factors affecting corruption in Europe: Evidence from panel data," Economic Analysis and Policy, Elsevier, vol. 51(C), pages 66-85.
    11. Marta Spreafico, 2013. "Institutions, the resource curse and the transition economies: further evidence," DISCE - Quaderni dell'Istituto di Politica Economica ispe0064, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    12. Edward Nissan & Shahdad Naghshpour, 2013. "Connecting corruption to ethnic polarization and religious fractionalization," Journal of Economic Studies, Emerald Group Publishing, vol. 40(6), pages 763 - 774, November.

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