Do economic and political crises lead to corruption? The role of institutions

Saha, Shrabani; Sen, Kunal

doi:10.1016/j.econmod.2023.106307

Cited by 8 publications

(5 citation statements)

References 47 publications

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“…The outcomes of our research suggest that political stability (viewed as the risk of government destabilization) has a positive and significant impact on corruption in all analyzed samples, exception is in the case of regression with random effects in cross-section and period and regression with fixed effects in cross-section and no effects in period, where the impact is negative and significant for European countries. These results are in line with those obtained by Nur-tegin and Czap (2012), Saha and Sen (2023), Schumacher (2013), Turedi and Altiner (2016), Zafar et al (2023).…”

Section: Resultssupporting

confidence: 92%

“…Robust institutions are able to curb corruption in situations of civil and political unrest and economic slowdown, nevertheless, the effect vanishes in further crises like democracies falling apart, coups, armed conflicts and civil wars, as well as in situations when there is a currency, inflation, or debt crisis. Effective institutions in mature economies also significantly reduce corruption during political and civil unrest (Saha and Sen, 2023).…”

Section: Jrf 253mentioning

confidence: 99%

“…, 2018; Bosco, 2016; Choi et al. , 2020; Curti and Mihov, 2018; Kubbe and Engelbert, 2018; Liu, 2020; Saha and Sen, 2021, 2023; Schumacher, 2013; Zeeshan et al. , 2022; Zhang, 2023; Zhu, 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

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Political stability and corruption nexus: an international perspective on European and Asian countries

Beju,

Ciupac-Ulici,

Bresfelean

2024

JRF

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PurposeThis paper aims to investigate the impact of political stability on corruption by drawing upon a sample encompassing both developed and developing European and Asian countries.Design/methodology/approachThe dataset, sourced from the Refinitiv database, spans from July 2014 to May 2022. Panel data techniques, specifically pooled estimation and dynamic panel data [generalized method of moments (GMM)] are employed. The analysis encompasses both fixed and random effects models to capture country-specific cross-sectional effects. To validate our findings, we perform a robustness test by including in the investigation four control variables, namely poverty, type of governance, economic freedom and inflation. To test heterogeneity, the dataset is further divided into two distinct subsamples based on the countries’ locations.FindingsEmpirical findings substantiate that political stability (viewed as the risk of government destabilization) has a positive and significant impact on corruption in all analyzed samples of European and Asian countries, though some differences are observed in various subsamples. When we take into account the control variables, these analysis results are robust.Research limitations/implicationsThis research provided a panel data analysis with GMM, while other empirical methodologies could also be used, like the difference-in-difference approach. However, our results should be validated by extending the time and the sample to a worldwide sample and using alternative measures of corruption and political stability. Moreover, our focus was on a linear and unidirectional relationship between the considered variables, but it would be interesting to test in our further research a non-linear and bidirectional correlation between them. Furthermore, we have introduced in the robustness test only four economic variables, but to consolidate our findings, we plan to include socioeconomic and demographic variables in future studies.Practical implicationsThese outcomes imply that authorities should be aware of the necessity of implementing anti-corruption policies designed to establish effective agencies and enforcement structures for combating systemic corruption, to improve the political environment and the quality of institutions and to apply coherent economic strategies to accelerate economic growth because higher political stability and sustainable development determine a decrease in levels of corruption.Social implicationsAt the microeconomic level, the survival of organizations may be in danger from new types of corruption and money laundering. Therefore, in order to prevent financial harm, the top businesses worldwide should respond to instances of corruption through strengthened supervisory procedures. This calls for the creation of a mechanism inside the code of conduct where correct reporting of suspected situations of corruption would have a prompt procedure to be notified of. To avoid corruption in operational procedures, national plans and policies should be developed by government officials, executives and legislators on a national level, as well as by senior management and the board of directors on an organizational level. This might lower organizations' extra corruption-related expenses, assure economic growth and improve global welfare.Originality/valueA novel feature of our research resides in its broad examination of a sizable sample of European and Asian countries regarding the nexus between corruption and political stability. The paper also investigates a less explored topic in economic literature, namely the impact of political stability on corruption. Furthermore, the study depicts policy recommendations, outlining effective and reasonable measures aimed at improving the political landscape and combating corruption.

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Section: Resultssupporting

confidence: 92%

Section: Jrf 253mentioning

confidence: 99%

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Political stability and corruption nexus: an international perspective on European and Asian countries

Beju,

Ciupac-Ulici,

Bresfelean

2024

JRF

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“…Marketing analytics, and specifically the accurate assessment of MP, have long been priorities in business (Rossiter, 2017). At the same time, assessing FP is crucial for investors and stakeholders in the decision-making process (Saha and Sen, 2023). Accordingly, this paper investigates the impact of RM practices on firms' marketing and FP in the long run.…”

Section: Conceptual Model Of the Studymentioning

confidence: 99%

“…2. Literature review and hypotheses development 2.1 Relationship marketing practices Significant research on marketing practices reveals the impact on firms of external factors, such as economic crises (Belkhir et al, 2022;Saha and Sen, 2023) and the development and expansion of RM (Do et al, 2023). Extant research also studies the development of the institutional environment and the internal capabilities of firms (Phan, 2019;Fern andez-Portillo et al, 2022).…”

Section: Introductionmentioning

confidence: 99%

The impact of relationship marketing practices on companies’ market and financial performance in emerging markets

Rebiazina,

Sharko,

Berezka

2024

JEFAS

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PurposeThe paper aims to reveal the impact of relationship marketing (RM) practices adopted by companies in emerging markets on their market and financial performance (FP) over a long-term, 13-year perspective.Design/methodology/approachThe research design combines primary empirical data from 229 Russian companies, based on the Contemporary Marketing Practices (CMP) survey, and objective FP data from official statistical databases for 2008–2020 to verify the impact of RM practices on market and FP in the long term.FindingsThe research underlines the significant impact of RM practices. It is important to notice that the effect of product development (PD) on marketing performance is mediated by competitor orientation. PD affects market and FP, whose roles vary with the return on assets (ROA).Research limitations/implicationsResearch design supplements the subjective survey data with the objective FP data on the ROA to avoid common method bias.Practical implicationsImplementation of RM practices by Russian companies can increase their effectiveness of performance in the long term.Originality/valueThis research shows the positive impact of RM practices on the FP of Russian firms over the past 13 years.

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Climate policy uncertainty and environmental degradation: Does democracy moderate this relationship?

Persakis,

Tsakalos,

Gkonis

et al. 2024

Cleaner Environmental Systems

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Do economic and political crises lead to corruption? The role of institutions

Cited by 8 publications

References 47 publications

Political stability and corruption nexus: an international perspective on European and Asian countries

Political stability and corruption nexus: an international perspective on European and Asian countries

The impact of relationship marketing practices on companies’ market and financial performance in emerging markets

Climate policy uncertainty and environmental degradation: Does democracy moderate this relationship?

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