Corruption and the effects of economic freedom

Luca Pieroni and Giorgio d'Agostino

No 133, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: The predictions that economic freedom is beneficial in reducing corruption have not been found to be universally robust in empirical studies. The present work reviews this relation- ship by using rms' data in a cross-country survey and argues that approaches using aggreg- ated macro data have not been able to explain it appropriately. We model cross-country variations of the microfounded economic freedom-corruption relationship using multilevel models. Additionally, we analyze this relationship by disentangling the determinants for several components of economic freedom because not all areas a ect corruption equally. The results show that the extent of the macro-e ects on the measures of (micro)economic freedom for corruption, identi ed by the degree of economic development of a country, can explain why a lack of competition policies and government regulations may yield more cor- ruption. Estimations for Africa and transition economy subsamples con rm our conjectures

Keywords: Corruption; economic freedom; multilevel models (search for similar items in EconPapers)
JEL-codes: H10 H11 H50 K20 O50 (search for similar items in EconPapers)
Date: 2011-09
New Economics Papers: this item is included in nep-law
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http://dipeco.uniroma3.it/public/WP%20133%20Pieron ... 20ultima%20copia.pdf

Related works:
Journal Article: Corruption and the effects of economic freedom (2013)
Working Paper: Corruption and the Effects of Economic Freedom (2009)
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Persistent link: https://EconPapers.repec.org/RePEc:rtr:wpaper:0133

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