Does financial development reduce corruption?

Yener Altunbas and John Thornton

Economics Letters, 2012, vol. 114, issue 2, 221-223

Abstract: We estimate the impact of bank credit to the private sector on corruption, using indicators of a country’s legal origin as instrumental variables to assess causality. We find that bank credit to the private sector reduces corruption, with the result robust to instrumenting for bank credit and for many different controls.

Keywords: Financial development; Corruption; Instrumental Variables (search for similar items in EconPapers)
JEL-codes: G20 O5 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (17)

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Working Paper: DOES FINANCIAL DEVELOPMENT REDUCE CORRUPTION? (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:114:y:2012:i:2:p:221-223

DOI: 10.1016/j.econlet.2011.08.020

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