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Generalised Trust and Relation Centrism for Corruption: Evidence from Low- and Middle-Income Countries

Tolu Olarewaju, Jagannadha Tamvada and Sharin McDowall
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Tolu Olarewaju: Staffordshire University
Jagannadha Tamvada: University of Southampton

Discussion Papers from Department of Economics, University of Birmingham

Abstract: We investigate the role of generalised trust and relation centrism for corruption as perceived by firms. The empirical analysis on 16,785 firms from 20 lower- and middle- income countries suggests that higher levels of friend centrism in society has a significantly negative relationship with corruption, while higher levels of generalised trust and family centrism have a significantly positive relationship with it. Overall, the empirical results demonstrate that corruption thrives in the presence of stronger family ties and more generalised trust in lower- and middle-income countries but is less of an obstacle in the presence of medium friend ties.

Keywords: Trust; Relation Centrism; Corruption (search for similar items in EconPapers)
Pages: 35 pages
Date: 2021-02
New Economics Papers: this item is included in nep-dev and nep-soc
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Handle: RePEc:bir:birmec:21-01