Empirical Determinants of Corruption: A Sensitivity Analysis

Serra, Danila

doi:10.2139/ssrn.560341

Cited by 150 publications

(232 citation statements)

References 24 publications

(13 reference statements)

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“…To address the endogeneity issue, we employ the IV estimation, in which the choice of appropriate instruments is important; instruments must be highly correlated with (1999) show that legal origin has a significant effect on corruption. Likely, using the extreme-bounds analysis, Serra (2006) comprehensively examines the determinants of corruption and points out that British legal origin is a crucial determinant of corruption. Given these findings, legal origin highly influences current level of corruption, but may not affect current economic growth.…”

Section: Resultsmentioning

confidence: 99%

How Does Corruption Influence the Effect of Foreign Direct Investment on Economic Growth?

Okada

Samreth

2014

Global Economic Review

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We investigate the effect of Foreign Direct Investment (FDI) on economic growth by employing the data of 132 countries for the period from 1995 to 2008, considering the role of corruption in each country as an absorptive factor. The estimation results indicate that, although FDI alone does not promote economic growth, it has a significant effect on economic growth if the interaction term between FDI and corruption is considered. The threshold level of corruption separating the negative and positive effects of FDI on economic growth is approximately in the 10th percentile from the least corrupt countries. The existence of a corruption threshold implies a counter-intuitive proposition: that FDI inhibits economic growth in countries where corruption is below a corruption threshold, and promotes economic growth in countries where corruption is above the threshold. Our results are robust even if we use different corruption indices and conduct the instrumental variable estimation to address endogeneity problems.

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Section: Resultsmentioning

confidence: 99%

How Does Corruption Influence the Effect of Foreign Direct Investment on Economic Growth?

Okada

Samreth

2014

Global Economic Review

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“…In recent years its use has expanded to other fields where there is no clear consensus about which variables belong in a "true" model. Recent examples of topics subjected to the EBA procedure include the determinants of corruption (Serra 2006), life satisfaction (Bjørnskov et al 2008) and R&D investment (Wang 2010).…”

Section: Empirical Methodsmentioning

confidence: 99%

Lock, stock, and barrel: a comprehensive assessment of the determinants of terror

2011

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. We assess the robustness of previous findings on the determinants of terrorism. Using extreme bound analysis, the three most comprehensive terrorism datasets, and focusing on the three most commonly analyzed aspects of terrorist activity, i.e., location, victim, and perpetrator, we re-assess the effect of 65 proposed correlates. Evaluating around 13.4 million regressions, we find 18 variables to be robustly associated with the number of incidents occurring in a given country-year, 15 variables with attacks against citizens from a particular country in a given year, and six variables with attacks perpetrated by citizens of a particular country in a given year. Terms of use: Documents in EconStor mayJEL-Code: D740, F510, F520, H560, K420.

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“…This variable is arguably the most important control variable, as citizens living in countries with higher income levels have strong preferences for better governance (Treisman 2000, Serra 2006). At the same time, richer countries have the financial resources to improve government regulations or to fight corruption.…”

Section: Data and Estimation Strategymentioning

confidence: 99%

“…These contradictory results could be explained by the period Leite and Weidmann use. They employ data for the 1970s and 1980s to compare the results of their subsequent growth regressions with those reported by Sachs and Warner (1995), basically excluding the 1990s for which Ades and Di Tella (1999), Treisman (2000) and Serra (2006) could not verify the negative link between natural resource exports and corruption. 4…”

Section: Introductionmentioning

confidence: 99%