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


  • Tolu Olarewaju

    (Staffordshire University)

  • Jagannadha Pawan Tamvada

    (University of Southampton)

  • Sharin McDowall

    (University of Birmingham)


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.

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  • 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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    Trust; Relation Centrism; Corruption;
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