Corruption and the Effects of Economic Freedom

Luca Pieroni and Giorgio d'Agostino

MPRA Paper from University Library of Munich, Germany

Abstract: The predictions that economic freedom is beneficial in reducing corruption have not been found to be universally robust in empirical studies. The present work reviews this relationship by using firms' data in a cross-country survey and argues that approaches using aggregated macro data have not been able to explain it appropriately. We model cross-country variations of the microfounded economic freedom-corruption relationship using multilevel models. Additionally, we analyze this relationship by disentangling the determinants for several components of economic freedom because not all areas affect corruption equally. The results show that the extent of the macro-effects on the measures of (micro)economic freedom for corruption, identified by the degree of economic development of a country, can explain why a lack of competition policies and government regulations may yield more corruption. Estimations for Africa and transition economy subsamples confirm our conjectures.

Keywords: Corruption; Economic freedom; Multilevel models (search for similar items in EconPapers)
JEL-codes: H10 H11 H50 K20 O50 (search for similar items in EconPapers)
Date: 2009-11-19
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/18731/1/MPRA_paper_18731.pdf original version (application/pdf)
https://mpra.ub.uni-muenchen.de/23578/1/MPRA_paper_23578.pdf revised version (application/pdf)
https://mpra.ub.uni-muenchen.de/23579/1/MPRA_paper_23579.pdf revised version (application/pdf)

Related works:
Journal Article: Corruption and the effects of economic freedom (2013)
Working Paper: Corruption and the effects of economic freedom (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:18731

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().