4.1 Article

Empirical determinants of corruption: A sensitivity analysis

Journal

PUBLIC CHOICE
Volume 126, Issue 1-2, Pages 225-256

Publisher

SPRINGER
DOI: 10.1007/s11127-006-0286-4

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Many variables have been proposed by past studies as significant determinants of corruption. This paper asks if their estimated impact on corruption is robust to alteration of the information set. A Global Sensitivity Analysis, based on the Learner's Extreme-Bounds Analysis gives a clear answer: five variables are robustly related to corruption. Corruption is lower in richer countries, where democratic institutions have been preserved for a long continuous period, and the population is mainly Protestant. Corruption is instead higher where political instability is a major problem. Finally, a country's colonial heritage appears to be a significant determinant of present corruption.

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