Determinants of corruption in developing countries: case of Tunisia

Azzouz Zouaoui, Mounira Ben Arab and Ahmad Mohammed Alamri

Journal of Financial Crime, 2021, vol. 29, issue 1, 111-127

Abstract: Purpose - This paper aims to investigate the economic, political or sociocultural determinants of corruption in Tunisia. Design/methodology/approach - To better understand the main determinants of corruption in Tunisia. This study uses The Bayesian Model Averaging (BMA) model, which allows us to include a large number of explanatory variables and for a shorter period. Findings - The results show that economic freedom is the most important variable of corruption in Tunisia. In second place comes the subsidies granted by the government, which is one of the best shelters of corruption in Tunisia through their use for purposes different from those already allocated to them. Third, this paper finds the high unemployment rate, which, in turn, is getting worse even nowadays. The other three factors considered as causal but of lesser importance are public expenditures, the human development index (HDI) and education. Education, the HDI and the unemployment rate are all socio-economic factors that promote corruption. Originality/value - The realization of this study will lead to triple net contributions. The first is to introduce explicitly and simultaneously political, social and economic determinants of corruption in developing countries. Second, unlike previous studies based on the simple and generalized regression model, the present research uses another novel and highly developed estimation method. More precisely, this study uses the BMA model, on the set of annual data for a period of 1998–2018. The third contribution of this research resides in the choice of the sample.

Keywords: Social; Corruption; Economic development; Political; Bayesian Model Averaging; O10; O11; O17; O55 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-02-2021-0037

DOI: 10.1108/JFC-02-2021-0037

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