Is there any relation between Hofstede’s cultural dimensions and corruption in developing countries?

Danur Condro Guritno, Mahrus Lutfi Adi Kurniawan, Irfan Mangkunegara and Bhimo Rizky Samudro

Journal of Financial Crime, 2020, vol. 28, issue 1, 204-213

Abstract: Purpose - This paper aims to investigate the relation between the cultural dimensions of Hofstede and corruption in developing countries. Design/methodology/approach - This study uses a quantitative research approach with multiple regression analysis and quantile regression (QR) analysis. Findings - The results showed that all cultural dimensions except power distance index (PDI) influence the level of corruption in developing countries. This study also found something interesting from the significance of the cultural dimensions of individualism and uncertainty avoidance (UAI) in the regression model. The community of developing countries tends to be collective which means that the level of corruption in the country is getting higher. The cultural dimension of UAI in developing countries is also interesting to study because of the positive relation with the Corruption Personal Index value which means it tends to be freer from corruption. Research limitations/implications - This research is limited to the number of samples and the scope of the Hofstede’s cultural dimensions which are limited in developing countries. Practical implications - The results of this research can add empirical evidence related to cultural variables and corruption, especially in developing countries. Social implications - This research is expected to be a reference on cultural aspect and corruption in developing countries to be studied more deeply to investigate the causes of corruption in developing countries. Originality/value - This is a preliminary study using cultural dimension and corruption in developing countries with quantile regression (QR) as an analysis tool and can add empirical evidence about the cultural dimensions and corruption.

Keywords: Corruption; Hofstede’s cultural dimension; Developing countries; Quantile regression; Cultural variable (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jfcpps:jfc-06-2020-0115

DOI: 10.1108/JFC-06-2020-0115

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