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Corruption: what are the effects on government effectiveness? Empirical evidence considering developed and developing countries

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  • G. C. Montes
  • P. C. Paschoal

Abstract

This study analyses the impact of corruption on government effectiveness for a sample of 130 countries. The findings suggest that less-corrupt countries have better quality of public service, better quality in the formulation and adoption of policies and greater credibility and government's commitment to such policies. The findings also suggest that the effect of corruption on government effectiveness is higher in developed countries. Moreover, the estimates also reveal that countries with the most indebted governments and with higher inflation rates have less-efficient governments, and an increase in rule of law represents a good strategy to improve government effectiveness. In turn, regarding developing countries, the findings show that countries with more democratic regimes have a higher degree of government effectiveness.

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  • G. C. Montes & P. C. Paschoal, 2016. "Corruption: what are the effects on government effectiveness? Empirical evidence considering developed and developing countries," Applied Economics Letters, Taylor & Francis Journals, vol. 23(2), pages 146-150, February.
    • Handle: RePEc:taf:apeclt:v:23:y:2016:i:2:p:146-150
    DOI: 10.1080/13504851.2015.1058900
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    6. Sohns, Franziska & Ghinoi, Stefano & Langosch, Magdalena, 2025. "Corrigendum to “The effect of public tolerance towards corruptive behaviour on healthcare efficiency and equity – The case of the UK's COVID-19 vaccination programme” [Soc. Sci. Med. Volume 361, Novem," Social Science & Medicine, Elsevier, vol. 369(C).
    7. Marco Ciziceno & Giovanni A. Travaglino, 2019. "Perceived Corruption and Individuals’ Life Satisfaction: The Mediating Role of Institutional Trust," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 141(2), pages 685-701, January.
    8. Nugroho S. B. Maria & Indah Susilowati & Salman Fathoni & Izza Mafruhah, 2021. "The Effect of Education and Macroeconomic Variables on Corruption Index in G20 Member Countries," Economies, MDPI, vol. 9(1), pages 1-13, February.
    9. Giuseppe Vita & Livio Ferrante, 2021. "Is legislation grease or sand to economic growth? An econometric analysis using data from Italian regions before and after the 2008 crisis," European Journal of Law and Economics, Springer, vol. 51(3), pages 541-561, June.
    10. Veronika Linhartová & Martina Halásková, 2022. "Determinants of corruption: a panel data analysis of Visegrad countries," Equilibrium. Quarterly Journal of Economics and Economic Policy, Institute of Economic Research, vol. 17(1), pages 51-79, March.
    11. Lin, Xifen & Wu, Wanqiang & Lan, Huanqi & Ma, Yong, 2024. "The impact of anti-organized crime on business environment: Evidence from China's anti-Mafia campaign," International Review of Economics & Finance, Elsevier, vol. 95(C).
    12. Di Vita, Giuseppe & Di Vita, Fabio & Cafiso, Gianluca, 2019. "The economic impact of legislation and litigation on growth: a historical analysis of Italy from its unification to World War II," Journal of Institutional Economics, Cambridge University Press, vol. 15(1), pages 121-141, February.
    13. Montes, Gabriel Caldas & Bastos, Júlio Cesar Albuquerque & de Oliveira, Ana Jordânia, 2019. "Fiscal transparency, government effectiveness and government spending efficiency: Some international evidence based on panel data approach," Economic Modelling, Elsevier, vol. 79(C), pages 211-225.
    14. Saleemi, Muhammad Waqar & Amir-ud-Din, Rafi, 2019. "How does quality of governance influence occurrence of crime? A longitudinal analysis of Asian countries," MPRA Paper 94142, University Library of Munich, Germany.
    15. Gazmend Amaxhekaj & Driton Qehaja & Atdhetar Gara, 2024. "The Role of Institutions in Energy Transition and Economic Growth in West Balkan Countries," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 3, pages 18-45.
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