 Arab Spring, democratization of corruption, and income inequalityChandan Jha and Fatih Kırşanlı International Journal of Finance & Economics, 2024, vol. 29, issue 3, 3678-3691 Abstract: How do political crises affect the interaction between economic and political outcomes? In this paper, we study one of the consequences of political turmoil by empirically examining whether the Arab Spring influenced the relationship between corruption and income inequality. Using panel data from 1996 to 2019 for the Middle East and North African (MENA) countries, we find that while corruption is positively associated with income inequality, the interaction term between corruption and the Arab Spring is negatively associated with income inequality. This result is consistent with the view that corruption has become more democratized after the Arab Spring. We use instrumental variable (IV) analysis to address potential endogeneity issues. Our findings suggest that not only studying the direct effects of political crises on economic and institutional variables is important, but studying their effects on shaping the association between economic and institutional variables can be insightful. Date: 2024 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wly:ijfiec:v:29:y:2024:i:3:p:3678-3691 Ordering information: This journal article can be ordered from Access Statistics for this article International Journal of Finance & Economics is currently edited by Mark P. Taylor, Keith Cuthbertson and Michael P. Dooley More articles in International Journal of Finance & Economics from John Wiley & Sons, Ltd. |
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