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Corruption Around the World: Evidence from a Structural Model

Axel Dreher, Christos Kotsogiannis and Steve McCorriston
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Steve McCorriston: Department of Economics, University of Exeter

No 702, Discussion Papers from University of Exeter, Department of Economics

Abstract: The causes and consequences of corruption have attracted much attention in recent years by both academics and policy makers. Central in the discussion on the impact of corruption are perception-based indices. Recent research has shown that perceived corruption might not be a good indicator of actual corruption in a country. In this paper, we employ a structural equation model—that treats corruption as a latent variable that is directly related to its underlying causes and effects—to derive an index of corruption. The index of corruption is derived for approximately 100 countries over the period 1976-97.

Keywords: Corruption; Economic Development; Latent Variables; Structural Equation Models. (search for similar items in EconPapers)
JEL-codes: H10 O1 K49 C39 (search for similar items in EconPapers)
Date: 2007
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