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Determinants of corruption in developing countries

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  • Chaudhry, Mumtaz Anwar
  • Shabbir, Ghulam

Abstract

Corruption is not a new phenomenon; we are living with it since the birth of government's institutions. Corruption has two dimensions; public sector corruption and private sector corruption. The public sector corruption means, misuse of public office for private benefits. For cross country analysis, public sector corruption is mainly focused. In this study, we have analyzed the 41 developing countries to investigate the determinants of corruption. Corruption determinants are sub-divided into economic determinants and non-economic determinants. The economic determinants include economic freedom, globalization, level of education, distribution of income and average level of income. The non-economic determinants list consists on press freedom, democracy and share of population affiliated with particular religion. The empirical findings of the study indicates that; all economic determinants are negatively related to the perceived level of corruption except distribution of income and non-economic determinants are not significantly explaining the variations in the level of corruption. This shows that the socio-political and religious norms are so weak that they can not affect the corruption level in these countries. The contribution of religion in people's practical life is very little, so the cultural values of developing countries are not religion based. Therefore, perceived level of corruption is not affected by the religion. This study concluded that government should focus the economic factors to curb the level of corruption.

Suggested Citation

  • Chaudhry, Mumtaz Anwar & Shabbir, Ghulam, 2007. "Determinants of corruption in developing countries," HWWI Research Papers 2-11, Hamburg Institute of International Economics (HWWI).
  • Handle: RePEc:zbw:hwwirp:2-11
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    Cited by:

    1. Banerjee, Panchali & Mukherjee, Vivekananda, 2015. "Does Introduction of Bureaucratic Competition Reduce Corruption in Public Service Delivery?," Working Papers 15/152, National Institute of Public Finance and Policy.
    2. Rajul Awasthi & Nihal Bayraktar, 2015. "Can tax simplification help lower tax corruption?," Eurasian Economic Review, Springer;Eurasia Business and Economics Society, vol. 5(2), pages 297-330, December.
    3. Irvin Mikhail Soto & Willy Walter Cortéz, 2015. "La corrupción en la burocracia estatal mexicana," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 17(33), pages 161-182, July-Dece.
    4. Kodila Tedika, Oasis, 2012. "Empirical Survey on the Causes of the Corruption
      [Aperçu empirique sur les causes de la corruption]
      ," MPRA Paper 41484, University Library of Munich, Germany.
    5. Kodila-Tedika, Oasis, 2012. "Marriage and Corruption : An empirical analysis on european data," MPRA Paper 40311, University Library of Munich, Germany.
    6. Awasthi, Rajul & Bayraktar, Nihal, 2014. "Can tax simplification help lower tax corruption ?," Policy Research Working Paper Series 6988, The World Bank.
    7. Adefeso, Hammed, 2018. "Corruption, Political Instability and Development Nexus in Africa: A Call for Sequential Policies Reforms," MPRA Paper 85277, University Library of Munich, Germany.
    8. Basem Elmukhtar Ertimi & Abulkasem Dowa & Elham Mohamed Albisht & Basim Aboubaker Oqab, 2016. "The Impact of Corruption on Economic Growth in OIC Countries," International Journal of Economics and Finance, Canadian Center of Science and Education, vol. 8(9), pages 91-103, September.
    9. Sdiri, Hanen & Ayadi, Mohamed, 2016. "Does innovation foster or mitigate the corruption obstacle? Firm-level evidence from Tunisia," MPRA Paper 71088, University Library of Munich, Germany.
    10. Yongqiang Gao, 2011. "Government Intervention, Perceived Benefit, and Bribery of Firms in Transitional China," Journal of Business Ethics, Springer, vol. 104(2), pages 175-184, December.
    11. Kumara, Ajantha Sisira & Handapangoda, Wasana Sampath, 2014. "Political environment a ground for public sector corruption? Evidence from a cross-country analysis," MPRA Paper 54721, University Library of Munich, Germany, revised 22 Mar 2014.
    12. repec:eee:spacre:v:21:y:2018:i:1:p:19-27 is not listed on IDEAS
    13. Kodila Tedika, Oasis, 2012. "Consequences De La Corruption : Panorama Empirique
      [Consequences of Corruption : Empirical survey]
      ," MPRA Paper 41482, University Library of Munich, Germany.

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