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Quantitative relations between corruption and economic factors

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  • Jia Shao
  • Plamen Ch. Ivanov
  • Boris Podobnik
  • H. Eugene Stanley

Abstract

We report quantitative relations between corruption level and economic factors, such as country wealth and foreign investment per capita, which are characterized by a power law spanning multiple scales of wealth and investments per capita. These relations hold for diverse countries, and also remain stable over different time periods. We also observe a negative correlation between level of corruption and long-term economic growth. We find similar results for two independent indices of corruption, suggesting that the relation between corruption and wealth does not depend on the specific measure of corruption. The functional relations we report have implications when assessing the relative level of corruption for two countries with comparable wealth, and for quantifying the impact of corruption on economic growth and foreign investments.

Suggested Citation

  • Jia Shao & Plamen Ch. Ivanov & Boris Podobnik & H. Eugene Stanley, 2007. "Quantitative relations between corruption and economic factors," Papers 0705.0161, arXiv.org.
    • Handle: RePEc:arx:papers:0705.0161
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    References listed on IDEAS

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    7. Hutzler, S. & Sommer, C. & Richmond, P., 2016. "On the relationship between income, fertility rates and the state of democracy in society," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 9-18.
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    14. Ahmed, Walid M.A., 2020. "Corruption and equity market performance: International comparative evidence," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).
    15. Osipian, Ararat, 2008. "The World is Flat: Modeling Educators’ Misconduct with Cellular Automata," MPRA Paper 7592, University Library of Munich, Germany.
    16. Hilary I. Okagbue & Pelumi E. Oguntunde & Sheila A. Bishop & Patience I. Adamu & Elvir M. Akhmetshin & Chukwuemeka O. Iroham, 2021. "Significant Predictors of Henley Passport Index," Journal of International Migration and Integration, Springer, vol. 22(1), pages 21-32, March.
    17. Michael Van Haute & Alexandra Agagon & Franz Froilan Gumapac & Marie Abigail Anticuando & Dianne Nicole Coronel & Mary Coleen David & Dan Ardie Davocol & Eunice Jairah Din & Carlos Alfonso Grey & Youn, 2023. "Determinants of differences in RT-PCR testing rates among Southeast Asian countries during the first six months of the COVID-19 pandemic," PLOS Global Public Health, Public Library of Science, vol. 3(11), pages 1-22, November.
    18. Chen, Yanguang, 2012. "The mathematical relationship between Zipf’s law and the hierarchical scaling law," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(11), pages 3285-3299.
    19. Cemil Kuzey & Ali Uyar & Amal Hamrouni & Merve Kilic & Rim Boussaada, 2021. "The link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 998-1021, June.
    20. Dean A. Shepherd & Vinit Parida & Joakim Wincent, 2021. "Bribery from a micro, demand-side perspective," Small Business Economics, Springer, vol. 57(4), pages 1661-1680, December.
    21. LABED Lazhar & BOUCENNA Mohammed Ridha & BENZOUAI Mohamed Cherif, 2022. "Analyzing The Impact Of Corruption On Income Levels Disparity Between Countries," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 160-175, August.
    22. Salois, Matthew J., 2013. "Regional changes in the distribution of foreign aid: An entropy approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(13), pages 2893-2902.
    23. Završnik, Jernej & Perc, Matjaž, 2024. "Bird’s-eye view of Slovenian pediatrics reveals complexity but also consistency," Chaos, Solitons & Fractals, Elsevier, vol. 181(C).

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