Corruption In Countries Research Articles

Relationship Corruption and Economic Growth ASEAN Countries

Corruption is a detrimental act for many people, especially related to the economy. Various groups widely discuss corruption and economic growth from academia, government, and the private sector. This is even more complex when coupled with competitiveness between countries and democratic systems. So this study aims to analyze the influence of global competitiveness, corruption and democracy on economic growth in ASEAN countries. This study used panel data analysis methods in 7 ASEAN countries from 2014-2019. The seven countries are Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Laos, and Cambodia. It is related to economic growth, corruption, and competitiveness in ASEAN countries. The results of this study show that corruption brings mudhorot but has yet to be significant to economic growth. Another interesting finding is that democracy negatively affects global competitiveness and increases economic growth. This research can be one of the government's policy recommendations by increasing economic growth through strict enforcement against corruption and increasing global competitiveness. To realize economic growth that prospers society requires the role of the government through increasing human and institutional resources to support other competitiveness factors that focus on technological, environmental, and innovation aspects

The Relationship between Global Competitiveness, Corruption, Democratic Systems on Economic Growth ASEAN countries

Corruption is a detrimental act for many people, especially related to the economy. Various groups widely discuss corruption and economic growth from academia, government, and the private sector. This is even more complex when coupled with competitiveness between countries and democratic systems. So this study aims to analyze the influence of global competitiveness, corruption and democracy on economic growth in ASEAN countries. This study used panel data analysis methods in 7 ASEAN countries from 2014-2019. The seven countries are Indonesia, Malaysia, Thailand, the Philippines, Vietnam, Laos, and Cambodia. It is related to economic growth, corruption, and competitiveness in ASEAN countries. The results of this study show that corruption brings mudhorot but has yet to be significant to economic growth. Another interesting finding is that democracy negatively affects global competitiveness and increases economic growth. This research can be one of the government’s policy recommendations by increasing economic growth through strict enforcement against corruption and increasing global competitiveness. To realize economic growth that prospers society requires the role of the government through increasing human and institutional resources to support other competitiveness factors that focus on technological, environmental, and innovation aspects.

Institutional Anomie Theory and Country-Level Public Corruption

Public-sector corruption siphons trillions of dollars from the global economy and contributes to social instability. Institutional Anomie Theory, with its focus on the links between social institutions, individualistic and achievement-oriented cultural norms, and crime, offers a possible framework for understanding corruption. This possibility is contrasted with research indicating that individualistic values and free markets reduce corruption. Using twenty years of data from 83 countries, this study finds institutional imbalance toward the economy is associated with higher levels of corruption. The lowest levels of corruption are found in highly individualistic countries, though institutional imbalance had a strong positive effect on corruption in such countries. Conversely, corruption is high in collectivistic countries regardless of institutional imbalance. Findings underscore the importance of institutional and cultural configurations, and their interplay, for corruption. We discuss the implications of our study for Institutional Anomie Theory and directions for future research.

Corruption in unlikely places

Corruption, defined as the “misuse of public position for private gain”, represents an act of deviance from official duties in the interest of self-enrichment. Denmark is ranked as one of the least corrupt countries in the world. Danish court records, however, show that corruption cases have appeared in the 21st century. Using Luhmann’s systems theory and Foucault’s method of genealogy, this article asks how this has happened. I argue that understanding corruption in Denmark may go back to changes in public administration ideas and practices since the 1990. New Public Management reform has increased the complexity in public administration where meaning horizons of communication related to different functional systems – especially the sub-systems of law and economy – clashes. I theorise and illustrate using court cases how the coexistence of different codes creates an environment for public employees that in some circumstances – however still rare – result in corruption.

Tax Compliance among Managers: Evidence from Randomized Audits1

Abstract Earlier studies of individuals’ law-abiding behavior find significant effects of home country corruption level on compliance. In our study of manager’s tax compliance, we use data from random audits and find associations between tax compliance and the use of an external accountant, age, manager’s place of origin and employees’ conflict exposure, but no effect from a manager’s own conflict exposure, nor Corruption Perception Index scores. The use of an external accountant seems to commit managers to comply with reporting requirements. Our findings suggest that factors such as managers’ age and company characteristics are important in understanding manager compliance. To study whether other mechanisms not previously tested may provide explanatory power, we specify two machinelearning models, which confirm our findings, but also suggest other associations. Nontechnical summary Our study examines tax compliance among managers using data from random audits. We found associations between tax compliance and the use of an external accountant, age, manager’s place of origin and employees’ conflict exposure. However, the manager’s own conflict exposure and corruption levels in their home country did not affect compliance. External accountants seem to encourage managers to comply with tax rules. Machine-learning models confirmed these findings and suggested other relevant factors.

Democracy is hot. Or not? Examining the link between political dissatisfaction and democratic support in European democracies

ABSTRACT The article focuses on the evaluative attitudes of citizens and their association with regime support in European democracies. In the context of widespread public scepticism with politics, different findings about the effect of political dissatisfaction in terms of democratic legitimacy have appeared. This may imply that citizens’ attitudes towards politics and their interrelations are complex and that the effects might not be the same across individuals and contexts. To investigate the link between political dissatisfaction and democratic support, data from the European Values Study and hierarchical regression models are used. The results of the analysis suggest that political dissatisfaction is not related to democratic support by highly interested and highly involved citizens. Nevertheless, contrary to the assumptions, the negative effect is quite strong in less corrupt countries, while in corrupt ones it tends to be positively related to democratic support.

Making or breaking the cycle of corruption: Exploring the impact of transitional justice on corruption in postconflict countries

Does the implementation of transitional justice (TJ) mechanisms such as trials, truth commissions, and institutional reforms reduce corruption by enhancing accountability, building trust, and creating a culture of deterrence? Although prior work has studied whether economic crimes should be included in TJ agendas, TJ’s potential to address corruption has been mostly overlooked. On the one hand, theory suggests that TJ could reduce corruption; yet, on the other, it indicates that TJ mechanisms are not effective enough at solving deep-rooted corruption. Testing these opposing arguments using data from 106 postconflict countries that experienced conflict between 1946 and 2006, I find that the implementation of TJ and corruption are not statistically associated. However, when I further investigate this relationship with only “well-implemented” TJ mechanisms, purges are found to be negatively associated with political corruption and amnesties are positively associated with regime corruption.

Small arms procurement and corruption in small NATO countries

PurposeThe study aims to assess military procurement strategy in NATO countries labelled as emerging markets (Czechia, Slovakia and Lithuania) and capitalist Norway, which vary in national culture as indicated by the Hofstede Culture Compass.Design/methodology/approachThis comparative case study analyses the procurement of a simple, mass-produced, off-the-shelf military product (FN Herstal MINIMI gun) in four small but very economically free countries from 2008 to 2023. The study answers the research question of how the unit price of MINIMI guns varies across post-communist and historical NATO countries distinguished by the variables operationalising national culture.FindingsThe general disability of the government to control corruption deviates the strategy of military procurement in post-communist defence institutions from an effective strategy of liberal capitalism, minimising the unit price and risks (Norway), to an odd strategy maximising the unit price and risks by preferring middlemen as agent of hidden agenda (Czechia).Research limitations/implicationsSome defence institutions in post-communist countries may be burdened by legislature capture, and detailed research is needed to determine this.Practical implicationsThe authors argue that national culture may contribute to significant goal displacement in the procurement strategy adopted by the government in an economically liberal state.Social implicationsWithout perfecting the control of corruption in post-communist defence institutions, the NATO burden-sharing debate on 2% of GDP will remain controversial.Originality/valueWith variables characterising national culture and the government’s ability to control corruption, the study elucidates a slow pace of convergence of post-communist countries to NATÓs values and procedures.

Entry cost, fixed cost and markup: Theory and evidence from the impact of corruption on prices

The welfare costs of markups are large. We analyze the impact of firm’s entry cost, fixed cost, and variable cost on markups using a general equilibrium model. The results show that entry cost induces higher markups, whereas fixed cost reduces markups with a stronger effect in low-income countries and for high-quality goods. As an empirical application, we examine the impact of corruption on the prices of identical products across countries. We find that the prices and markups are higher in more corrupt countries, and the effect is stronger in low-income countries and for high-quality products. These results suggest that corruption causes higher entry costs and fixed costs, leading to a fewer number of firms and more misallocations among firms in equilibrium. Therefore, the model is useful for distinguishing entry and fixed costs empirically, and it highlights the importance of identifying the nature of the cost to better understand their impact on markups and welfare.

Societal trust and corporate bankruptcy

We find that societal trust—the extent to which residents of a country trust others—is associated with a more efficient bankruptcy process. Bankruptcy resolutions are faster, efficient outcomes are more likely, and the value lost during the bankruptcy process is lower in countries with higher societal trust. This effect of societal trust on the efficiency of the bankruptcy process is more pronounced in countries with low-income per capita, and in corrupt countries. Our results are derived from the analysis of survey data concerning the outcomes of a hypothetical firm's bankruptcy in 99 countries from 2004 to 2020, a dataset also utilized by Djankov et al. (2008).

Causality And Long-Term Impacts Of Investment, Corruption, Unemployment, And Economic Growth In Asia-Pacific Countries

Causality And Long-Term Impacts Of Investment, Corruption, Unemployment, And Economic Growth In Asia-Pacific Countries

Public Administration Ethics Education to Build Anti-Corruption Integrity among Students of SMP N 13 Padang

The high level of corruption, which has become a pathology in developing countries, especially Indonesia, is evidenced by the 2022 international transparency data, which scored 34/100 and ranked 110 out of 180 surveyed countries. Indonesia ranks as the 5th most corrupt country in Southeast Asia. With these results, Indonesia has only been able to increase its Corruption Perception Index (CPI) score by 2 points from 32 over the past decade since 2012. Despite Law No. 20 of 2001's eradication of corruption, which covers various aspects, related to anti-corruption efforts, including education and anti-corruption socialization, this pathology remains unresolved. Therefore, a strong foundation is needed, especially among the younger generation as the nation's future leaders, by strengthening students' character regarding integrity and courage against corruption. This community engagement used socialization, interviews with school members, and participatory observation within the school environment. The concept of public administration ethics serves as the basis for this activity. The results showed that anti-corruption education through the perspective of public administration at SMP N 13 Padang plays a significant role in shaping students' integrity and courage in combating corruption. As adolescents, students are in the process of forming moral values and behaviors. Thus, anti-corruption education interventions can significantly impact shaping their character. Students improved their understanding of corruption and developed a more courageous attitude and strong integrity. The results provided valuable insights and a foundation for further improvement in anti-corruption education in middle schools.

MEANS OF INTERNATIONAL LAW TO ELIMINATE CORRUPTION THREATS TO NATIONAL SECURITY

The subject of the article is the means of international law to eliminate corruption threats to national security. The research methodology involved the use of logical, historical and legal, systemic, natural law, formal and dogmatic, hermeneutical, economic and legal (analysis, comparison), axiological, statistical and economic methods. The purpose of the article is to reveal the means of international law to eliminate corruption threats to national security. Carrying out the study made it possible to draw the following conclusions. It was found that most countries of the world have implemented international anti-corruption norms into their national legal frameworks and have the support of international organisations specialising in the fight against corruption. The resources of foreign legal doctrine become an important source of support for domestic scientists to convince of the correctness of their scientific conclusions regarding successful anti-corruption measures. An extensive system of international anti-corruption assistance allows to minimise the costs of own relevant infrastructure. On this basis and against the background of access to powerful anti-corruption resources at the European and world level, there is essentially sabotage of anti-corruption policy in Ukraine, which has critically affected the security of the Ukrainian nation. It was emphasised that military threats from the outside are an exceptional danger for corrupt countries. At the same time, even the stabilising effect of microcorruption becomes dangerous for them in today's unstable development environment. All the positive effects of corruption in the form of improved communication through small gifts that comply with legal customs disappear when top corruption spreads in a country. Then this level of corruption multiplies a series of official crimes, treason and other crimes that destroy the foundations of national security. Already after the point of no return – the beginning of military aggression from outside against the background of prolonged high-level corruption inside the country – external support for anti-corruption reforms becomes a condition for the survival of the nation, the reduction of human losses in the war, and so forth. The need to neutralise these two challenges to national security becomes urgent after years of procrastination on accountability and other dimensions of integrity in public positions. In these cases, the national legal standard falls under the critical conditions of ultra-fast transformation, according to the successful anti-corruption models of countries that saved their nation from war and high-level corruption. It is noted that the standards set for Ukraine are quite close. These are EU standards, which are achieved through the adoption and implementation of those legal norms that reflect the current state of ensuring human opportunities. It is stressed that the specification of anti-corruption norms and the structural units of their implementation in legal reality are nativemorphic. They always differ in the degree of unification within the contexts common to nations, namely, legal traditions, mentality, historical conditions, economy, etc. Transnational anti-corruption assistance in the mutual enrichment of some nations through the possibility of using the experience of other nations. The author concludes that knowledge about the practices of building virtuous relations is the capital of the nation that possesses it. Conscious disregard of this knowledge by the recipient should be remedied by charging a fee for it. It is proposed to establish an International Organisation for Integrity Development, which would include the top 20 countries in terms of corruption and rule of law perception indices.

Capital structure and public corruption among non-financial firms in the MENA region: The impact of the Arab spring

This study investigated the determinants of financing decisions of firms from the Middle East and North Africa (MENA) region, particularly the effect of public corruption on financing decisions and the effect of disorder following the Arab Spring on public corruption-financing structure relationship. The study encompasses a total of 800 business entities from 14 different countries, spanning the time frame of 2005–2018. Data is analyzed through the application of static fixed effects and dynamic GMM-System models. Results indicate that large, tangible companies prefer debt, whereas profitable companies with more room for growth choose equity. Less corruption is associated with increased corporate debt. The use of debt decreased because of the Arab Spring, and corruption's effect on leverage became weaker. The speed of adjustment to the target leverage is comparatively slow for book leverage, while it is significantly greater for market leverage. These outcomes are consistent with the pecking order behavior resulted from increasing information asymmetry, but the tradeoff theory has some support as well. The implications of this study entail the need for enhancing investor protection, strengthening control measures, increasing transparency, and fostering the overall growth of the financial system to facilitate enterprises' use of debt financing, particularly in the post-Arab Spring era. This paper provides fresh empirical evidence demonstrating the effect of the Arab Spring on capital structure and on the relationship between country corruption and capital structure in the MENA region. The paper also expands the body of research on capital structure and corruption across countries by providing empirical findings from a region that has been relatively overlooked in previous scholarly works.

The influence of personal and economic oppression on a country's corruption levels worldwide

This empirical research study endeavors to analyze the indirect association between oppression and corruption in 147 nations around the globe to answer one question: "Why does oppression drive corruption in many nations?" The author used secondary data from two different resources. The first source is the Corruption Perception Index (CPI), created by Transparency International (TI) in 2020, and the Human Freedom Index (HFI), co-published by the Cato Institute. In addition, the second source is the Political Stability Index in 2020 to test the three research hypotheses using the R-square, and Anova shows that the model is personal and economic oppression explains 53.5 percent of the variance. In addition, the Weighted Least Squares Regression Analyses imply that there is a positive and meaningful connection between personal oppression (β = 3.028, p < 0.000) and corruption and economic oppression and corruption (5.203, p < 0.000). This study's findings confirmed the theoretical and conceptual relationship between oppression and bribery and identified personal and economic oppression factors as the leading causes of corruption in many countries. The study findings also contribute to the literature and the industry as well. Theoretically, the study results help researchers to understand why oppression causes corruption at the country level. Practically, the study results help policymakers, educators, and international business planners to consider roots when making successful strategic decisions in the era of the globalized world. The author also discussed the research limitations and practical and theoretical implications.

Trends in corruption and shadow economy in European countries

Corruption and the shadow economy are among the most pressing issues facing European countries. These phenomena significantly impact the socio-economic development, political stability, and legal systems of states. The purpose of the paper is to analyze the trends of corruption and the shadow economy in 34 European countries over the period from 2010 to 2022. The research employed tools such as grouping, comparison and generalization methods, time series analysis, and descriptive statistics calculations. Calculations were based on World Bank data using StataSE 18 software. Analyzing the standard deviation, minimum, and maximum values of corruption and shadow economy indicators identifies the most variable indicators: the indicator of primary government expenditures as initially approved budgets and the corruption perception index. It was found that despite the implementation of numerous anti-corruption reforms and regulatory measures, countries such as Albania, Moldova, Ukraine, and Bulgaria continue to face high levels of corruption, as evidenced by their low corruption perception index levels. The main reasons for this included weak enforcement mechanisms, gaps in accountability, and low levels of transparency in public administration. The least corrupt European countries were Denmark, Norway, Finland, Switzerland, and Sweden. This research observed high levels of the shadow economy in Ukraine, Cyprus, and Moldova, while Denmark, Norway, and Sweden demonstrated the lowest levels. The results of the study can be used to develop organisational and economic measures to combat corruption and the shadow economy by public authorities, business entities and other economic agents, which is important for the economic growth of European countries.

Corruption and Economic Growth in BRICS Countries

Corruption and Economic Growth in BRICS Countries

Corruption, development, and the state in Putin’s Russia

ABSTRACT The paper investigates the determinants of corruption in Russia based on an original survey of 1,376 businesspeople in 39 regions. Regression analysis reveals economically and statistically significant correlations between bribes, development, and state intervention in the economy. Using the instrumental variable of geographical location, this paper provides supportive evidence for a causal (negative) relationship between prosperity and bribes. It finds a positive correlation between regional corruption and state ownership and a negative one between corruption and the size of the bureaucracy. These results hold for both perceived and experiential corruption. This paper contributes to the investigation of corruption in Russia and post-communist countries. It illustrates the importance of economic development, effective bureaucracy, and the reduction of state property for mitigating corruption.

Corruption and audit fees: New evidence from EU27 countries

This study examines the relationship between country‐level corruption and audit pricing decisions across EU27 countries. Using a sample of 29,607 firm‐year observations for the period 2011–2021, I find that firms headquartered in more corrupt countries pay higher audit fees and have longer reporting lags. I also show that this relationship is stronger after the EU audit reform came into force in 2016. The results suggest that auditors respond to corruption risk stemming from the broader macroeconomic environment by increasing audit fees and audit effort. In additional analyses, I show how the association between audit fees and corruption varies across firm industries, and I document that female engagement partners tend to be more sensitive to corruption risk than their male counterparts. Ultimately, I find unexpected evidence indicating that financial reporting quality, proxied by discretionary accruals, is not adversely affected by corruption. This study addresses prior calls for a more granular understanding of external factors in audit research and provides the first European evidence of the association between corruption and auditor responses. The implications of this study should be particularly relevant for researchers, market participants and regulators.

Internal threats to the national security of Ukraine

A general theoretical description of the main internal threats to the national security of Ukraine is presented. Threats, risks and challenges are distinguished. It is emphasized that the problem of social inequality, economic stratification of the population and injustice is acute in Ukraine. The gap between the rich and the poor continues to grow. It causes anxiety and crime, which is, as is known, a significant threat to human rights and freedoms, national security. The global problem of today is terrorism, which poses a significant danger to human rights, is not only a criminal, but also a military-political threat, a new form of war, as we can see in the example of the war with Russia, when Russian troops kill the civilian population of Ukraine, destroy residential buildings and objects of critical infrastructure. Restrictions of rights and freedoms, ineffectiveness of the law, inefficiency of the authorities, which are too popular in a corrupt society, are also a threat. Demographic losses and the lack of a clear image of the country's future complete the perception of internal threats. The author concludes that corruption and war occupy a special place in the system of threats to national security. Corruption undermines democracy, the rule of law, hinders the effective provision of public services and nullifies people's hopes for security, without which it is impossible to fully realize human rights and freedoms. In a corrupt country, corrupt people get rich on war, steal material aid and funds allocated to Ukraine by other countries, international organizations, even funds collected by the population to help the military. By their actions, corrupt officials convince the whole world that its help is a useless thing, because it can be stolen. The facts of corruption are used by the enemy to incite the population to protest, which also does not contribute to national security.