Are Corruption and Ease of Doing Business Correlated? An Analysis of 172 Nations

Mongay, Jorge; Filipescu, Diana A.

doi:10.1057/9781137007742_2

Cited by 6 publications

(16 citation statements)

References 28 publications

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“…Evaluation of the ease of doing business is essential for managers because it provides a yardstick for the measure of risks and set-up costs (Mongay and Filipescu, 2012). Availability of good institutions is an indicator of economic freedom; geography, market size, and labour costs are also determinants of the inward fl ow of foreign direct investment and its magnitude (Júlio, Pinheiro-Alves, and Tavares, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…There is a direct connection between corruption and the rent-seeking attitude of individuals in positions of administrative leadership or authority (Shleifer and Vishny, 1993;Jain, 2001;Hillman, 2013). When higher rents are connected with abuse of position of administrative leadership or authority, the total illegal disbursements and penalties associated with such abuse of power lead to corruption (Mongay and Filipescu, 2012). Mongay and Filipescu (2012) posited that the roles of the government as well as historical and geographical factors are the main elements that are important in the study of corruption.…”

Section: Literature Reviewmentioning

confidence: 99%

“…When higher rents are connected with abuse of position of administrative leadership or authority, the total illegal disbursements and penalties associated with such abuse of power lead to corruption (Mongay and Filipescu, 2012). Mongay and Filipescu (2012) posited that the roles of the government as well as historical and geographical factors are the main elements that are important in the study of corruption. Corruption negatively affects cross-border investment and consequently reduces the volume of foreign direct investment in such regions (Smarzynska and Wei, 2002;Júlio, Pinheiro-Alves, and Tavares, 2013).…”

Section: Literature Reviewmentioning

confidence: 99%

“…Ease of doing business often has major impact on growth in developed countries, while corruption often has major impact on growth in low-income economies (Sunkanmi and Isola, 2014;Mongay and Filipescu, 2012). The National Bureau of Statistics (2017) reports that nearly one-third of Nigerians paid or were requested to pay a bribe when they had contact with public offi cials between June 2015 and May 2016.…”

Section: Introductionmentioning

confidence: 99%

“…In the presence of laws and policies that make it extremely diffi cult for corrupt practices, in order to carry out international business, citizens resort to the "black market" to evade the legal system and transact business (Mongay and Filipescu, 2012). Thus, literature requires the assessment of the effects of corruption on ease of doing business in order not to promote the practice of corruption and not to make doing business more diffi cult for corporations.…”

Section: Introductionmentioning

confidence: 99%

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Corruption and Ease of Doing Business: Evidence from ECOWAS

Nageri

Gunu

2020

Acta Universitatis Sapientiae, Economics and Business

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Corruption has a major impact on growth in low-income economies, while ease of doing business has a major impact on growth in developed countries. The study empirically examines the effect of corruption on ease of doing business. The study analyses unbalanced panel data of corruption rank, corruption score, control of corruption, and inflation, together with other economic and financial institutional factors and ease of doing business score for the period of 2004–2017. Results indicate that: corruption rank, inflation, and import have negative and significant effect on ease of doing business; corruption score, control of corruption, lending rate spread, and education (skill level) have positive and significant effect on ease of doing business; gross capital formation and population have insignificant negative effect on ease of doing business; export and gross domestic product have insignificant positive effect on ease of doing business. The random effect model is a consistent and most efficient model, indicating common mean value for ease of doing business for the dataset. The study recommends improved corruption scores, control of corruption, and ranks to encourage ease of doing business through monetary policy and infrastructural facilities.

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Section: Literature Reviewmentioning

confidence: 99%