EconPapers    
Economics at your fingertips  
 

Financial reforms and corruption: Evidence using GMM estimation

Chandan Jha ()

International Review of Economics & Finance, 2019, vol. 62, issue C, 66-78

Abstract: This paper assesses the impact of financial reforms on corruption using a panel of 87 countries for 1984–2005. To account for the dynamic nature and high persistence of corruption, the paper employs the difference and system generalized method of moments (GMM) estimators. It finds that policy reforms targeted towards financial liberalization reduce corruption. This result is robust to the inclusion of a number of control variables and the choice of the GMM estimator. Interestingly, the financial liberalization index is found to be positively correlated with corruption though this relationship is not robust. The findings also indicate that legal origins do not impose a binding constraint on the effectiveness of financial reforms in reducing corruption.

Keywords: Corruption; Financial reforms; Government size; Legal origins; Liberalization; Openness (search for similar items in EconPapers)
JEL-codes: D73 G28 O16 (search for similar items in EconPapers)
Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056016301836
Full text for ScienceDirect subscribers only

Related works:
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:eee:reveco:v:62:y:2019:i:c:p:66-78

DOI: 10.1016/j.iref.2019.03.003

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Haili He ().

 
Page updated 2020-08-03
Handle: RePEc:eee:reveco:v:62:y:2019:i:c:p:66-78