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Corruption Around the World: Evidence from a Structural Model

Author

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  • Axel Dreher

    (EHT Zurich, KOF Swiss Economic Institute)

  • Christos Kotsogiannis

    (Department of Economics, University of Exeter)

  • Steve McCorriston

    (Department of Economics, University of Exeter)

Abstract

The causes and consequences of corruption have attracted much attention in recent years by both academics and policy makers. Central in the discussion on the impact of corruption are perception-based indices. Recent research has shown that perceived corruption might not be a good indicator of actual corruption in a country. In this paper, we employ a structural equation model—that treats corruption as a latent variable that is directly related to its underlying causes and effects—to derive an index of corruption. The index of corruption is derived for approximately 100 countries over the period 1976-97.

Suggested Citation

  • Axel Dreher & Christos Kotsogiannis & Steve McCorriston, 2007. "Corruption Around the World: Evidence from a Structural Model," Discussion Papers 0702, University of Exeter, Department of Economics.
    • Handle: RePEc:exe:wpaper:0702
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    More about this item

    Keywords

    Corruption; Economic Development; Latent Variables; Structural Equation Models.;
    All these keywords.

    JEL classification:

    • H10 - Public Economics - - Structure and Scope of Government - - - General
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • K49 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Other
    • C39 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Other

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