The effect of the government intervention in economy on corruption

Mutascu, Mihai (2009): The effect of the government intervention in economy on corruption. Published in: Eurasian Journal of Business and Economics , Vol. 2, No. 3 (May 2009): pp. 55-71.

Abstract

The corruption is a complex and generalized phenomenon all over the world, with cultural, social, psychological, political and economical dimensions. The defining and the studying of the phenomenon are going through the most different thinking filters known in the specialized literature: social-cultural, political, administrative and economic. The article’s aim is to quantify and analyze the relationship between corruption and political, administrative and economic determinants factors, through a regressive "pool data" model. The sample includes 135 countries of the world, from all continents, with different degrees of economic development and politicaladministrative structures, for the period 1996-2008. What is interesting is that, the study shows the distortion into the government intervention function in the economy, seen as a significant proliferation factor for the corruption phenomenon. This connection has different intensity, as the state is developed, developing or in transition. Moreover, there is a number of unobserved factors, which emphasizes or temperate in temporal approach the relationship between corruption - political, administrative and economic determinants factors.

• Item Type: MPRA Paper
• Language: English
• Keywords: Corruption Factors Interventionism Limits Analysis
• Subjects: I - Health, Education, and Welfare > I3 - Welfare, Well-Being, and Poverty > I30 - General; D - Microeconomics > D7 - Analysis of Collective Decision-Making > D73 - Bureaucracy ; Administrative Processes in Public Organizations ; Corruption; H - Public Economics > H1 - Structure and Scope of Government > H10 - General; K - Law and Economics > K2 - Regulation and Business Law > K20 - General

References

Al-Marhubi F (2000) Corruption and inflation. Economics Letters 66

Carraro A, Fochezatto A, Hillbrecht O (2006) O Impacto Da Corrupção Sobre O Crescimento Econômico Do Brasil: Aplicação De Um Modelo De Equilíbrio Geral Para O Período 1994-1998. Anais do XXXIV Encontro Nacional de Economia.Proceedings of the 34th Brazilian Economics Meeting No.57

Carvaja R (1999) Large-Scale Corruption: Definition, Causes, and Cures. Systemic Practice and Action Research, Vol. 12 (4)

Cypher J, Dietz J (2008) The Process Of Economic Development 3rd Edition. Hardcover Press

Barr A, Serra D (2006) Culture and Corruption. Centre for the Study of African Economies, University of Oxford, March 1

Devettere R (2002) Introduction to Virtue Ethics, Boulder, Lynne Rienner Co.

Drehel A, Schneider F (2006) Corruption and the Shadow Economy: An Empirical Analysis. CESIFO Working Paper No. 1653, Category 1: Public Finance

Hofstede G (2003) Culture’s Consequences, Comparing Values, Behaviors, Institutions, and Organizations Across Nations. Sage Publications, Second Edition

Hungtington S (1968) Modernization and corruption, Political Order in Changing Societies. New Haven. Conn., Yale University Press

Husted B (1999) Wealth, Culture, and Corruption. Journal of International Business Studies,Vol.30, No. 2, (2nd Qtr., 1999)

Nichols P, Siedel G, Kasdin M (2004) Corruption as a Pan-Cultural Phenomenon: An Empirical Study in Countries at Opposite Ends of the Former Soviet Empire. 39 Tex. Int'l L.J. 215

Nye J (1967) Corruption and Political Development: A Cost-Benefit Analysis. 61 American Political Science Review 417, 419

Paldham M (2001) Corruption and religion: Adding to the economic model. Kyklos 54

Rajib N, Subarna K (2000) Corruption Across Countries: The Cultural and Economic Factors.Business & Professional Ethics Journal, Vol. 21 (1)

Rose-Ackerman S (1999) Corruption and Government: Causes, Consequences, and Reform.Cambridge University Press

Rose-Ackerman S (1978) Corruption: A Study in Political Economy. Academic Press, New York 14

Shleifer A, Vishny R (1993) Corruption. Quarterly Journal of Economics. Vol. 108 (3)

Svensson J (2005) Eight Questions about Corruptions. Journal of Economic Perspectives (19)

Tanzi V (1998) Corruption Around the World: Causes, Consequences, Scope, and Cures. IMF Working Paper No. WP/98/63, Washington, May

Wang H, Rosenau J (2001) Transparency International and Corruption as an Issue of Global Governance.Global Governance 7(1)

Tanzi, V. (1998) „Corruption Around the World: Causes, Consequences, Scope, and Cures”, IMF Working Paper. No. WP/98/63, Washington, May.