This paper presents new empirical evidence on the determinants of corruption, focussing on the role of globalisation and inequality. The estimates for a panel of 102 countries over the period 1995-2005 point to three main results: (i) Detection technologies, reflected in a high level of development, human capital and political rights reduce corruption, whereas natural resource rents increase corruption; (ii) Globalisation (in terms of both trade and financial openness) has a negative effect on corruption, which is more pronounced in developing countries; (iii) Inequality increases corruption, and once the role of inequality is accounted for, the impact of globalisation on corruption is halved. In line with recent theory, this suggests that globalisation - besides reducing corruption through enhanced competition - affects corruption also by reducing inequality.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5470 |
| Date | 10 1900 |
| Creators | Badinger, Harald, Nindl, Elisabeth |
| Publisher | Wiley |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Relation | http://dx.doi.org/10.1111/twec.12156, http://onlinelibrary.wiley.com/, http://epub.wu.ac.at/5470/ |
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