Culture, Perceived Corruption, and Economics

Abstract

Corruption can impede commerce and economic development, yet it seems to be tolerated in many countries. The purpose of this study was to develop and test a model that integrates socioeconomic factors related to corruption. The analysis revealed that a negative relationship between economic adversity and wealth was mediated by corruption. Economic adversity was positively related to corruption, and corruption was inversely related to wealth. Uncertainty avoidance moderated the relationship between economic adversity and corruption, whereas power distance and uncertainty avoidance were positively associated with corruption. The implications of these results for enhancing the effectiveness of international agreements are discussed.

Ethical preferences for influencing superiors: A 41-society study

“…While there is a paucity of crosscultural research that has investigated the impact of macro-level factors (e.g., economic development) on micro-level behaviors (e.g., influence), macrolevel research has shown that economic development level is related to ethical business conduct. Specifically, the prevalence of unethical and corrupt business practices has been found to be negatively related to economic development level (Collins, 2000;Davis & Ruhe, 2003;Getz & Volkema, 2001;Husted, 1999;Mauro, 1995;Treisman, 2007). One explanation can be found in institutional anomie theory, which identifies the ends vs means issue faced by individuals in developing or have-not societies (Merton, 1968).…”

“…We made this decision for the following reasons. First, the individualism and collectivism dimensions have been used consistently in previous cross-cultural research on ethical decision-making and business corruption (Cherry, Lee, & Chien, 2003;Davis & Ruhe, 2003;Getz & Volkema, 2001;Thorne & Saunders, 2002;Volkema, 2004). Second, there is substantial consensus that individualism is the most pervasive and reliable sociocultural dimension (Oyserman, Coon, & Kemmelmeier, 2002).…”

“…Most notable are three macro-level studies of economic indicators, cultural values, and perceived corruption (Davis & Ruhe, 2003;Getz & Volkema, 2001;Husted, 1999) and a recent multilevel study of cultural and institutional influences on firm-level bribery (Martin, Cullen, Johnson, & Parboteeah, 2007). While helpful in understanding societal and corporate antecedents of business corruption, these studies do not address cross-cultural differences in individual-level ethical behaviors that involve the working relationship of subordinates with their superiors.…”

The Consequences of Corruption on Inflation in Developing Countries: Evidence from Panel Cointegration and Causality Tests

“…In their study, which examined the relationship between corruption and economic factors, Getz and Volkema (2001) found that economic uncertainties increased the general level of prices, and the increase in inflation triggered corruption. The study by Paldam (2002), which investigated the economic and cultural determinants of corruption, revealed that an increase in inflation rates gave rise to corruption in the short term.…”

Does Economic Rationalization Decrease or Increase Accounting Professionals’ Occupational Values?

“…For example, accountants guided by economic rationality are likely to use their colleagues to develop a favorable assessment of a client firm from which they can gain a financial advantage. Although prior research has not examined the impact of economic rationalization on accountants' values, few studies have found a lower concern with ethical behavior in countries with a higher level of economic rationalization (Franke and Nadler 2008;Getz and Volkema 2001).…”