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The transition of corruption institutions and dynamics

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The transition of corruption institutions and dynamics. / Paldam, Martin.

I: European Journal of Political Economy, Bind 67, 101952, 03.2021.

Publikation: Bidrag til tidsskrift/Konferencebidrag i tidsskrift /Bidrag til avisTidsskriftartikelForskningpeer review

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Paldam, Martin. / The transition of corruption institutions and dynamics. I: European Journal of Political Economy. 2021 ; Bind 67.

Bibtex

@article{485beddce71b4a23ba38a61bb76677f1,
title = "The transition of corruption institutions and dynamics",
abstract = "The paper analyzes the strong but complex relation between corruption and development. The corruption/honesty index is explained by three variables measuring aspects of development: Income, Polity and Fraser (for Economic Freedom). The last two indices represent the political and the economic system. Two problems arise: (i) Development is a common factor in all four variables, giving the variables strong confluence, so it is difficult to sort out the contribution of each explanatory variable. However, kernel regressions on the corruption/income scatter give a well-defined long-run transition path, which permits an identification of the specific contributions of institutions to corruption. (ii) The correlation of corruption to the first difference of the three development variables is negative. This gives a substantial lag in the corruption/income relation in the form of wide J-curves, but the main direction of causality is still from development to corruption. High income and modern institutions cause low corruption after some time. The corruption/development-relation is a fuzzy but strong long-run connection.",
author = "Martin Paldam",
year = "2021",
month = mar,
doi = "10.1016/j.ejpoleco.2020.101952",
language = "English",
volume = "67",
journal = "European Journal of Political Economy",
issn = "0176-2680",
publisher = "Elsevier BV",

}

RIS

TY - JOUR

T1 - The transition of corruption institutions and dynamics

AU - Paldam, Martin

PY - 2021/3

Y1 - 2021/3

N2 - The paper analyzes the strong but complex relation between corruption and development. The corruption/honesty index is explained by three variables measuring aspects of development: Income, Polity and Fraser (for Economic Freedom). The last two indices represent the political and the economic system. Two problems arise: (i) Development is a common factor in all four variables, giving the variables strong confluence, so it is difficult to sort out the contribution of each explanatory variable. However, kernel regressions on the corruption/income scatter give a well-defined long-run transition path, which permits an identification of the specific contributions of institutions to corruption. (ii) The correlation of corruption to the first difference of the three development variables is negative. This gives a substantial lag in the corruption/income relation in the form of wide J-curves, but the main direction of causality is still from development to corruption. High income and modern institutions cause low corruption after some time. The corruption/development-relation is a fuzzy but strong long-run connection.

AB - The paper analyzes the strong but complex relation between corruption and development. The corruption/honesty index is explained by three variables measuring aspects of development: Income, Polity and Fraser (for Economic Freedom). The last two indices represent the political and the economic system. Two problems arise: (i) Development is a common factor in all four variables, giving the variables strong confluence, so it is difficult to sort out the contribution of each explanatory variable. However, kernel regressions on the corruption/income scatter give a well-defined long-run transition path, which permits an identification of the specific contributions of institutions to corruption. (ii) The correlation of corruption to the first difference of the three development variables is negative. This gives a substantial lag in the corruption/income relation in the form of wide J-curves, but the main direction of causality is still from development to corruption. High income and modern institutions cause low corruption after some time. The corruption/development-relation is a fuzzy but strong long-run connection.

U2 - 10.1016/j.ejpoleco.2020.101952

DO - 10.1016/j.ejpoleco.2020.101952

M3 - Journal article

VL - 67

JO - European Journal of Political Economy

JF - European Journal of Political Economy

SN - 0176-2680

M1 - 101952

ER -