Martin Paldam

The Transition of Corruption: Institutions and dynamics

Publikation: Working paperForskning

Dokumenter

  • wp19_06

    Forlagets udgivne version, 2,08 MB, PDF-dokument

The cross-country data for honesty/corruption and income has a correlation of about 0.75, and the data have a typical transition path; but the correlation of the growth rate and honesty is negative. Thus, the short and long-run findings are contradictory, and it is shown that the contradiction lasts a dozen years. The transition of corruption happens relatively late and works through changes in institutions. To catch all institutions the Polity-index is used for the political dimension and the Fraser-index of economic freedom for the economic one. The two indices explain as much as income, but they both have a transition, so the relations are partly spurious. To identify the non-spurious part of the relation and sort out causality, the D-index is defined as the difference between the corruption index and the transition path. Institutional instability increases corruption, but when institutions stabilize, both democracy and economic freedom increase honesty.
OriginalsprogEngelsk
UdgivelsesstedAarhus
UdgiverInstitut for Økonomi, Aarhus Universitet
Antal sider26
StatusUdgivet - 15 maj 2019
SerietitelEconomics Working Papers
Nummer2019-06

    Forskningsområder

  • Corruption, cross-country, income vs institutions

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