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Corruption determinants in developing and transition economies: Insights from a multi-level analysis

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  • Joël CARIOLLE

    (Ferdi)

Abstract

This paper re-examines the contribution of five major corruption determinants emphasized by the literature, through an empirical analysis based on a hierarchical modelling of firm-level corruption data. Exploiting a baseline sample of 34,358 bribe reports of firms from 71 developing and transition countries, I use a three-level estimation framework to study the contribution of the economic and human development levels, the size of governments, trade openness, and democracy. Multi-level estimations stress that the negative effect of income per capita on bribery is found to be mostly driven by improvement in human capital, more particularly by the decline in fertility rates. They also allow the reconciling of some contrasting findings of the literature on other corruption determinants, but point that the contribution of corruption determinants is context-dependent.

Suggested Citation

  • Joël CARIOLLE, 2018. "Corruption determinants in developing and transition economies: Insights from a multi-level analysis," Working Papers P229, FERDI.
    • Handle: RePEc:fdi:wpaper:4391
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    More about this item

    Keywords

    corruption; bribery; firm; multi-level model; hierarchical model;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • P48 - Political Economy and Comparative Economic Systems - - Other Economic Systems - - - Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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