Arbeitspapier

Macroeconomic analysis of corruption in developing economies

Based on empirical data, a two-equation game-type corruption reaction function model was developed. A data to model approach was used rather than the usual a priori approach. The general hypothesis tested was the monkey see, monkey do principle. The latest data on corruption among developing countries was obtained from the Enterprise Surveys done by the World Bank Group in 2010. The key variables were the percent of domestic firms expecting to make informal payment to public officials to get things done, and the percent of foreign firms doing like wise. The time span is from 2002-2010. A variety of econometric methods were used. In general, the statistical results were quite good and supported the hypothesis. Both reaction equations were positively sloped. Time had a reducing effect on the frequency of domestic corruption, yet it had an increasing effect on foreign corruption. Variations in the frequency of corruption across regions of countries were generally not significant.

Language
Englisch

Bibliographic citation
Series: Working Paper ; No. 2011-02

Classification
Wirtschaft
Model Construction and Estimation
Criteria for Decision-Making under Risk and Uncertainty
Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook: General
Legal Procedure, the Legal System, and Illegal Behavior: Other
Business Economics: Other
Subject
Firm
Corruption
Game Model
Developing Countries

Event
Geistige Schöpfung
(who)
Gander, James P.
Event
Veröffentlichung
(who)
The University of Utah, Department of Economics
(where)
Salt Lake City, UT
(when)
2011

Handle
Last update
10.03.2025, 11:42 AM CET

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Gander, James P.
  • The University of Utah, Department of Economics

Time of origin

  • 2011

Other Objects (12)