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The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis
Abstract
This paper examines the effects of economic freedom, democracy and its interaction term on controlling corruption. Interactive results indicate that economic freedom and democracy significantly combat corruption. Economic freedom reduces corruption in any political environment. Democracy increases corruption when economic liberalization is low.
Journal Title
Economics Letters
Volume
105
Issue
2
Copyright Statement
© 2009 Elsevier B.V.. This is the author-manuscript version of this paper. Reproduced in accordance with the copyright policy of the publisher. Please refer to the journal's website for access to the definitive, published version.
Subject
Economic Development and Growth