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Is corruption contagious? An econometric analysis

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  • Joseph G. Attila

    (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique)

Abstract

In this paper, I analyze how corruption in one country may be affected by its neighbors' corruption. It seeks to explain why corruption is perpetuating in large geographical areas populated by developing countries despite anticorruption efforts made in the single country. In our empirical approach, we capture the spatial dependency by regional corruption. Three main techniques are used: spatial autocorrelation tests, GMM and three stage least squares. Our results show that, a lower regional corruption (as measured by the average of the level of corruption in one country's neighbors) is associated with a lower level of national corruption. Among the potential mechanisms explaining this correlation, the level of economic development (GDP per capita) seems to be the most important. Foreign aid and trade openness show less clear results. Noneconomic mechanisms such as cross-country contagion processes of voice expressions and demands on accountability are other possible transmission mechanisms.

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  • Joseph G. Attila, 2008. "Is corruption contagious? An econometric analysis," Post-Print hal-00329950, HAL.
    • Handle: RePEc:hal:journl:hal-00329950
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    Cited by:

    1. Dong, Bin & Torgler, Benno, 2012. "Corruption and social interaction: Evidence from China," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 932-947.
    2. Miguel Marquez & Javier Salinas-Jimenez & Ma. del Mar Salinas-Jimenez, 2011. "Exploring differences in corruption: the role of neighboring countries," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 14(1), pages 11-19.
    3. Gen-Fu Feng & Bo Sui & Min-Yi Dong & Chun-xia Jiang & Chun-Ping Chang, 2018. "Border is better than distance? Contagious corruption in one belt one road economies," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(4), pages 1909-1928, July.
    4. Laura Langbein & Stephen Knack, 2010. "The Worldwide Governance Indicators: Six, One, or None?," Journal of Development Studies, Taylor & Francis Journals, vol. 46(2), pages 350-370.
    5. Dong, Bin & Torgler, Benno, 2012. "Corruption and social interaction: Evidence from China," Journal of Policy Modeling, Elsevier, vol. 34(6), pages 932-947.
    6. Lv, Zhike & Gao, Zhenya, 2021. "The effect of corruption on environmental performance: Does spatial dependence play a role?," Economic Systems, Elsevier, vol. 45(2).
    7. Bo Sui & Gen-Fu Feng & Chun-Ping Chang, 2018. "The pioneer evidence of contagious corruption," Quality & Quantity: International Journal of Methodology, Springer, vol. 52(2), pages 945-968, March.
    8. Jayoti Das & Cassandra E. DiRienzo, 2012. "Spatial Decay of Corruption in Africa and The Middle East," Economic Papers, The Economic Society of Australia, vol. 31(4), pages 508-514, December.
    9. Becker, Sascha O. & Egger, Peter H. & Seidel, Tobias, 2009. "Common political culture: Evidence on regional corruption contagion," European Journal of Political Economy, Elsevier, vol. 25(3), pages 300-310, September.
    10. Jamie Bologna, 2017. "Contagious corruption, informal employment, and income: evidence from Brazilian municipalities," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 58(1), pages 67-118, January.
    11. Masoud Khodapanah & Zahra Dehghan Shabani & Mohammad Hadi Akbarzadeh & Mahboubeh Shojaeian, 2022. "Spatial spillover effects of corruption in Asian countries: Spatial econometric approach," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(4), pages 699-717, August.

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