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  • Investigating the interaction effect of democracy and economic freedom on corruption: a cross-country quantile regression analysis

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    Author(s)
    Saha, S
    Su, JJ
    Griffith University Author(s)
    Su, Jen-Je
    Year published
    2012
    Metadata
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    Abstract
    This paper explores the interaction effects of economic freedom and democracy in controlling corruption for 100 countries by using quantile regression technique. The main contribution is to explore the interaction effects throughout conditional distribution of corruption across nations. Our results reinforce some findings in the literature, but also provide new conclusions. The findings suggest a stronger and significant interaction effect in reducing corruption, especially in the most-corrupt countries. However, democratic and economic freedoms alone may not cure corruption effectively in the most-corrupt ...
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    This paper explores the interaction effects of economic freedom and democracy in controlling corruption for 100 countries by using quantile regression technique. The main contribution is to explore the interaction effects throughout conditional distribution of corruption across nations. Our results reinforce some findings in the literature, but also provide new conclusions. The findings suggest a stronger and significant interaction effect in reducing corruption, especially in the most-corrupt countries. However, democratic and economic freedoms alone may not cure corruption effectively in the most-corrupt nations, a sound democratic reform can eliminate corruption substantially only after achieving a threshold level of economic freedom.
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    Journal Title
    Economic Analysis and Policy
    Volume
    42
    Issue
    3
    Publisher URI
    http://www.eap-journal.com/vol_42_iss_3.php
    Copyright Statement
    © The Author(s) 2012. The attached file is reproduced here in accordance with the copyright policy of the publisher. For information about this journal please refer to the journal’s website or contact the authors.
    Subject
    Economic Development and Growth
    Economics
    Publication URI
    http://hdl.handle.net/10072/51784
    Collection
    • Journal articles

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