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Economies
Special Issues
Impact of Corruption on the Economy
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Impact of Corruption on the Economy

A special issue of Economies (ISSN 2227-7099).

Deadline for manuscript submissions: closed (31 July 2021) | Viewed by 21184

Special Issue Editor

Dr. George R. G. Clarke

E-Mail Website
Guest Editor
Division of International Banking and Finance Studies, A.R. Sanchez, Jr. School of Business, 5001 University Blvd, Texas A&M International University, Laredo, TX 78041, USA
Interests: development economics; political economy; corruption; institutions; Africa; privatization; competition; firm surveys
Special Issues, Collections and Topics in MDPI journals

Special Issue Information

Dear Colleagues,

Corruption—the use of public resources and power for private gain—has been a terrible burden on economic development throughout the world. Because corruption can destabilize public institutions, undermine public finances, disrupt public services, and encourage inefficient and costly overregulation, it discourages firms and individuals from investing in productive activities. Moreover, because powerful political interests often benefit from corruption, it can be hard to get governments to fight corruption effectively. This Special Issue aims to publish high-quality research related to the causes and consequences of corruption. Although we would like to encourage the submission of articles related to any aspect of corruption, we especially encourage submissions on the following topics: the effect of corruption on productivity, growth, and other measures of economic and firm performance; the relationship between regulation and corruption; the interaction between institutional quality and corruption; how corruption affects small and informal firms; challenges associated with measuring corruption; the effect of corruption on poverty and inequality; corruption and corporate social responsibility; and ways that governments and civil society can combat corruption.

Dr. George R.G. Clarke
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 100 words) can be sent to the Editorial Office for announcement on this website.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Economies is an international peer-reviewed open access monthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 1800 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

  • Corruption
  • Bribes
  • Regulation
  • Institutions
  • Combatting corruption

Published Papers (5 papers)

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Research

16 pages, 1618 KiB  
Article
Corruption and Tax Burden: What Is the Joint Effect on Total Factor Productivity?
by Kouramoudou Kéïta and Hannu Laurila
Economies 2021, 9(1), 26; https://0-doi-org.brum.beds.ac.uk/10.3390/economies9010026 - 01 Mar 2021
Cited by 4 | Viewed by 2763
Abstract
A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden [...] Read more.
A common conclusion in the literature is that both corruption and taxation hamper economic growth. It is also plausible that both affect total factor productivity, which, by the famous Solow residual, is a vital driver of economic progress. Moreover, corruption and tax burden are supposed to be intertwined. This paper focuses on the supposedly linked effects of corruption and tax burden on total factor productivity. The empirical study uses panel data from 90 countries for the time span of 1996–2014. The results show that both corruption and tax burden deteriorate total factor productivity, but that an increase in tax burden mitigates the negative effect of corruption. Full article
(This article belongs to the Special Issue Impact of Corruption on the Economy)
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13 pages, 698 KiB  
Article
The Effect of Education and Macroeconomic Variables on Corruption Index in G20 Member Countries
by Nugroho S. B. Maria, Indah Susilowati, Salman Fathoni and Izza Mafruhah
Economies 2021, 9(1), 23; https://0-doi-org.brum.beds.ac.uk/10.3390/economies9010023 - 16 Feb 2021
Cited by 4 | Viewed by 3521
Abstract
The purpose of this study was to analyze the effect of several macroeconomic variables consisting of gross domestic products (GDP) per capita, economic openness, government effectiveness index, inflation, and the level of education on the corruption index in G20 member countries. This study [...] Read more.
The purpose of this study was to analyze the effect of several macroeconomic variables consisting of gross domestic products (GDP) per capita, economic openness, government effectiveness index, inflation, and the level of education on the corruption index in G20 member countries. This study focused on the effect of education on the level of corruption in the G20 member countries by treating other macroeconomic variables as control variables that were not analyzed in depth. This research used mixed methods with multiple regression with two stage least square (2SLS) estimation method followed by phenomenological analysis. This study found that primary education enrolment and the lifelong learning index did not significantly influence the level of corruption for all G20 member countries, developed member countries, and developing member countries. Secondary education enrolment showed a negative and significant influence on the level of corruption in all categories of countries (all members, developing, and developed countries). Tertiary education enrolment had a negative and significant influence on the level of corruption in all members and developing countries, but had a positive influence in the developed countries. GDP per capita had a contrasting influence: negative and significant influence in the developed countries, but positive and significant influence in the developing countries. Similar to secondary education, the government effectiveness index had a negative and significant influence in all categories of countries (all members, developing, and developed countries). In contrast, inflation and economic openness had a positive and significant influence on the level of corruption, but only in developing countries. The policy implication of this study is the prioritization of secondary education to tackle corruption problems. Full article
(This article belongs to the Special Issue Impact of Corruption on the Economy)
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18 pages, 316 KiB  
Article
How Do Women Managers Avoid Paying Bribes?
by George R. G. Clarke
Economies 2021, 9(1), 19; https://0-doi-org.brum.beds.ac.uk/10.3390/economies9010019 - 04 Feb 2021
Cited by 3 | Viewed by 2255
Abstract
Previous studies have found that firms where women have greater influence are less likely to pay bribes than other firms. In this study, we ask how these firms avoid paying bribes. Using data from the World Bank’s Enterprise Surveys, we find that firms [...] Read more.
Previous studies have found that firms where women have greater influence are less likely to pay bribes than other firms. In this study, we ask how these firms avoid paying bribes. Using data from the World Bank’s Enterprise Surveys, we find that firms run by women avoid meeting and interacting with government officials when they can. Female-managed firms, for example, are less likely to apply for construction and import licenses, less likely to meet with tax officials, and less likely to bid for government contracts than male-managed firms. However, female-managed firms are no less likely to say that officials sought bribes when they met with them than male-managed firms. This suggests the main way that firms with women in positions of power avoid paying bribes is by avoiding situations where officials might seek them. Full article
(This article belongs to the Special Issue Impact of Corruption on the Economy)
16 pages, 686 KiB  
Article
Corruption, Taxation and the Impact on the Shadow Economy
by Daniel Němec, Eva Kotlánová, Igor Kotlán and Zuzana Machová
Economies 2021, 9(1), 18; https://0-doi-org.brum.beds.ac.uk/10.3390/economies9010018 - 04 Feb 2021
Cited by 11 | Viewed by 6105
Abstract
While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow [...] Read more.
While assessing the economic impacts of corruption, the corruption-related transmission channels which influence taxation as such have to be duly considered. Taking the example of the Czech Republic, this article aims to evaluate the impacts corruption has on the size of the shadow economy as well as on the individual sources of long-term economic growth, making use of a transmission channel through which corruption affects the tax burden components. Using the method of an extended DSGE model, it confirms the initial assumption that an increase in perceived corruption supports the shadow economy’s growth, but at the same time, it demonstrates that corruption and especially its perception has a significantly different effect on two key areas—the capital accumulation and the labour force size. It further identifies another sector of the economy representing taxes which are prone to tax evasion while asserting that corruption has a much more destructive effect on this sector of the economy, offering generalized implications for other post-communist EU member states in a similar situation. Full article
(This article belongs to the Special Issue Impact of Corruption on the Economy)
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16 pages, 1721 KiB  
Article
Impact of Economic Freedom on Corruption Revisited in ASEAN Countries: A Bayesian Hierarchical Mixed-Effects Analysis
by Nguyen Ngoc Thach and Bui Hoang Ngoc
Economies 2021, 9(1), 3; https://0-doi-org.brum.beds.ac.uk/10.3390/economies9010003 - 05 Jan 2021
Cited by 10 | Viewed by 3796
Abstract
Conceptual and applied studies assessing the linkage between economic freedom and corruption expect that economic freedom boosts economic growth, improves income, and reduces levels of corruption. However, most of them have concentrated on developed and developing groups, while the Association of Southeast Asian [...] Read more.
Conceptual and applied studies assessing the linkage between economic freedom and corruption expect that economic freedom boosts economic growth, improves income, and reduces levels of corruption. However, most of them have concentrated on developed and developing groups, while the Association of Southeast Asian Nations (ASEAN) countries have drawn much less attention. Empirical findings are most often conflicting. Moreover, previous studies performed rather simple frequentist techniques regressing one or some freedom indices on corruption that do not allow for grasping all the aspects of economic freedom as well as capturing variations across countries. The study aims to investigate the effects of ten components of economic freedom index on the level of corruption in ten ASEAN countries from 1999 to 2018. By applying a Bayesian hierarchical mixed-effects regression via a Monte Carlo technique combined with the Gibbs sampler, the obtained results suggest several findings as follows: (i) In view of probability, the predictors property rights, government integrity, tax burden, business freedom, labor freedom, and investment freedom have a strongly positive impact on the response perceived corruption index; (ii) Government spending, trade freedom, and financial freedom exert a strongly negative effect, while the influence of monetary freedom is ambiguous; and (iii) There is an existence of not only random intercepts but also random coefficients at the country level impacting the model outcome. The empirical outcome could be of major importance for more efficient corruption controlling in emerging countries, including ASEAN nations. Full article
(This article belongs to the Special Issue Impact of Corruption on the Economy)
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