The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis

Shrabani Saha, Rukmani Gounder and Jen-Je Su

Economics Letters, 2009, vol. 105, issue 2, 173-176

Abstract: This paper examines the effects of economic freedom, democracy and its interaction term on controlling corruption. Interactive results indicate that economic freedom and democracy significantly combat corruption. Economic freedom reduces corruption in any political environment. Democracy increases corruption when economic liberalization is low.

Keywords: Democracy; Economic; freedom; Corruption; Panel; data (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (52)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:105:y:2009:i:2:p:173-176

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