Nexus among corruption, political instability and natural resources on economic recovery in Vietnam

Liu, Fang; Chen, H. F.; Zhang, Shuwen

doi:10.1016/j.resourpol.2023.103743

Cited by 3 publications

(2 citation statements)

References 39 publications

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“…There is evidence that corruption hinders economic development by having a negative impact on investment (Ghalwash, 2014;Mauro, 1995;Wang et al, 2022;Wu et al, 2023b), innovation (Bukari and Anaman, 2021;Dokas et al, 2023;Goedhuys et al, 2016;Wang et al, 2022), performance of the company (Blagojevic and Damijan, 2013;Sahakyan and Stiegert, 2012) and economic development (Aidt, 2009;Blackburn and Powell, 2011;Djankov et al, 2002;Dreher and Schneider, 2010;Ghalwash, 2014;Hoinaru et al, 2020;Klitgaard, 1988;Shleifer and Vishny, 1993). According to other research, however, corruption either raises corporate profitability for privately owned businesses (Ferris et al, 2021) or briefly boosts gross domestic product (GDP), (Ondo, 2017;Qureshi et al, 2021;Saha and Gounder, 2013;Wang et al, 2022), especially in developing countries, while eventually reducing it on long run (Liu et al, 2023). Despite legal and cultural constraints, corruption exists everywhere.…”

Section: Introductionmentioning

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: Introductionmentioning

confidence: 99%

“…, 2021; Saha and Gounder, 2013; Wang et al. , 2022), especially in developing countries, while eventually reducing it on long run (Liu et al. , 2023).…”

Section: Introductionmentioning

confidence: 99%

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

Beju,

Ciupac-Ulici,

Bresfelean

2024

JRF

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Nexus between carbon dioxide emissions, population, migration, foreign direct investment, and gross domestic product: New evidence in the context of Vietnam

Ngoc,

Xuan,

Huong

2024

Journal of Open Innovation: Technology, Market, and Complexity

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Investigating the Link among Corruption, Corporate Governance and Corporate Performance in Family Businesses: A Future Research Agenda

Paganou,

Antoniadis,

Zournatzidou

et al. 2024

Administrative Sciences

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Family businesses have distinct characteristics that differentiate them from other firms. Researchers must meticulously analyze issues, with a specific focus on the interplay of family business dynamics, considering this factor. The main objective of this research was to provide insight into the adverse effects of family companies, particularly how the power dynamics inside these organizations might enable corruption or fraud and how corporate governance can help in mitigating these phenomena. Specifically, family businesses can be investigated by considering unique characteristics such as ownership and control, generational dynamics, and corporate governance. To address the study topic, a bibliometric analysis was conducted using the R statistical programming language and the bibliometric tools Biblioshiny and VOSviewer. Data were obtained from the Scopus database and examined in documents. The lack of unbiased external evaluation, the ineffectiveness of internal audits, disputes between different generations, the dominance of family members, and the narrow extent of governance all contribute to the exacerbation of tensions that promote corruption inside family firms. Moreover, the findings indicate that CEO duality correlates with the occurrence of corruption and fraudulent activities, such as manipulating profits. Furthermore, the findings suggest a correlation between the qualities of the board and instances of corruption and bribery inside family firms. These factors also increase the probability of financial statement fraud.

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Nexus among corruption, political instability and natural resources on economic recovery in Vietnam

Cited by 3 publications

References 39 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

Nexus between carbon dioxide emissions, population, migration, foreign direct investment, and gross domestic product: New evidence in the context of Vietnam

Investigating the Link among Corruption, Corporate Governance and Corporate Performance in Family Businesses: A Future Research Agenda

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