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Generalised Trust and Relation Centrism for Corruption: Evidence from Low- and Middle-Income Countries

Author

Listed:
  • Tolu Olarewaju

    (Staffordshire University)

  • Jagannadha Pawan Tamvada

    (University of Southampton)

  • Sharin McDowall

    (University of Birmingham)

Abstract

We investigate the role of generalised trust and relation centrism for corruption as perceived by firms. The empirical analysis on 16,785 firms from 20 lower- and middle- income countries suggests that higher levels of friend centrism in society has a significantly negative relationship with corruption, while higher levels of generalised trust and family centrism have a significantly positive relationship with it. Overall, the empirical results demonstrate that corruption thrives in the presence of stronger family ties and more generalised trust in lower- and middle-income countries but is less of an obstacle in the presence of medium friend ties.

Suggested Citation

  • Tolu Olarewaju & Jagannadha Pawan Tamvada & Sharin McDowall, 2021. "Generalised Trust and Relation Centrism for Corruption: Evidence from Low- and Middle-Income Countries," Discussion Papers 21-01, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:21-01
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    Keywords

    Trust; Relation Centrism; Corruption;
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