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Financial Reforms and Corruption

Author

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  • Jha, Chandan Kumar

Abstract

In this paper, I assess the impact of financial reforms on corruption using a panel of 85 countries for 1984-2005. I find that several, but not all, of the policies targeted towards financial liberalization reduce corruption. Specifically, the abolition of entry barriers, credit controls, and excessive reserve requirements along with improvements in the security markets and banking supervision are associated with lower corruption.

Suggested Citation

  • Jha, Chandan Kumar, 2015. "Financial Reforms and Corruption," MPRA Paper 65420, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:65420
    as

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    File URL: https://mpra.ub.uni-muenchen.de/65420/1/MPRA_paper_65420.pdf
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    References listed on IDEAS

    as
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    6. Abdul Abiad & Enrica Detragiache & Thierry Tressel, 2010. "A New Database of Financial Reforms," IMF Staff Papers, Palgrave Macmillan, vol. 57(2), pages 281-302, June.
    7. Jakob Svensson, 2005. "Eight Questions about Corruption," Journal of Economic Perspectives, American Economic Association, vol. 19(3), pages 19-42, Summer.
    8. Agnello, Luca & Mallick, Sushanta K. & Sousa, Ricardo M., 2012. "Financial reforms and income inequality," Economics Letters, Elsevier, vol. 116(3), pages 583-587.
    9. Levine, Ross, 2005. "Finance and Growth: Theory and Evidence," Handbook of Economic Growth,in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 12, pages 865-934 Elsevier.
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    12. Ahlin, Christian & Pang, Jiaren, 2008. "Are financial development and corruption control substitutes in promoting growth?," Journal of Development Economics, Elsevier, vol. 86(2), pages 414-433, June.
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    More about this item

    Keywords

    Corruption; Banks; Financial Reforms; Liberalization;

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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