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Droughts and Corruption

Daniela Wenzel ()
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Daniela Wenzel: Helmut Schmidt University, Hamburg, Postal: Helmut-Schmidt-University Hamburg Department of Economics Holstenhofweg 85, 22043 Hamburg,

No 181/2018, Working Paper from Helmut Schmidt University, Hamburg

Abstract: Natural disasters are a challenge for good governance - this is the result of recent research investiga- ting the effects of natural disasters on one important antagonistic force to good governance, public corruption. However, a specific analysis of droughts is so far neglected in this young strand of the literature. This paper fills that gap by analysing the short- and long-term influence of droughts on cor- ruption within a unified panel estimation approach for 122 countries during the years 1985 to 2013. Relying on a meteorological drought index, we show that higher drought exposure is followed by increases in corruption. This effect holds true for subgroups of poor and rich countries although its ti- ming and intensity is different. In addition, we identify drought-induced corruption as a phenomenon of countries yielding high per capita income in the agricultural sector.

Keywords: Drought; Natural Disasters; Public Sector Corruption; Institutions; Economic Development (search for similar items in EconPapers)
JEL-codes: D73 E02 Q54 Q56 (search for similar items in EconPapers)
Pages: 54 pages
Date: 2018-09-28
New Economics Papers: this item is included in nep-dev, nep-env and nep-mac
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