Measures Of Corruption Research Articles

Preventive Measures for Corruption Through Anti-Corruption Education at Higher Education Institution (A Case Study at State Polytechnic of Malang )

High level of corruption gives Indonesia adverse image among international communities. It may brings disadvantageous impact for various sectors. Effort of corruption eradication has so far focused on two aspects namely prevention and prosecution of corruption. The two measures will gives satisfying result if government bodies and society work together. To prevent corruption, there is a need for active participation of students by developing anti-corruption culture in our society. This study aims at encouraging university students to take active role as agent of change and pioneer for anti-corruption movements. For students of State Polytechnique of Malang, This is quantitative study by employing descriptive approach aiming at elaborating or describing events, circumstances, people or other objects which are interrelated. Data are gathered by conducting interview, observation and distributing questionnaire. For students of State Polytechnique of Malang, anti-corruption education aims at giving sufficient knowledge on corruption and its eradication efforts as well as internalizing values of anti-corruption. In addition, it also aims at developing anti-corruption culture and encouraging students to take active role in preventive measure for corruption in Indonesia.Based on several previous studies, the researcher comes to conclusion that anti-corruption education, which is part of Pancasila and Citizenship Education, might develop students’ awareness to prevent corruption. It is expected that after graduating from State Polytechnique of Malang, they are able to put themselves as role model for people around them. On the other side, there are several instructional method used in State Polytechnique of Malang. Those are In Class Discussion, Case Study, Thematic exploration, Film Discussion and General Lecture. Keywords: preventive measures, anti-corruption education, students, higher education. DOI: 10.7176/JLPG/105-11 Publication date: January 31 st 2021

Corruption and corporate risk-taking: evidence from emerging markets

PurposeThis paper investigates the relationship between corruption and corporate risk-taking in emerging markets where corruption is considered as “public enemy number one.”Design/methodology/approachThe study measures corruption based on Corruption Control Index annually published by World Bank and examines how corruption affects corporate risk-taking in emerging markets covered in MSCI Emerging Market Index.FindingsWith a sample of 75,338 observations from 8,326 firms across 20 emerging stock markets during the period 2005–2016, the author finds that corruption negatively affects corporate risk-taking. Robustness checks with a reduced sample without China and India, alternatives of corruption measures, various measures of risk-taking and Generalized method of moments (GMM) estimator also show consistent results. Moreover, additional analysis shows that information disclosure mitigates the effect of corruption on risk-taking.Originality/valueThe extant literature implies that corruption may decrease corporate risk-taking behavior through two channels including operational cost and debt financing cost.

The Extractive Industries Transparency Initiative (EITI) and corruption in Latin America: Evidence from Colombia, Guatemala, Honduras, Peru, and Trinidad and Tobago

The Extractive Industries Transparency Initiative (EITI), launched in 2002, has been promoted as an international anti-corruption tool. Several empirical evaluations on the effectiveness of the EITI scheme provide average estimates based on cross-country analysis. However, little empirical work has been conducted on individual case studies, especially in the context of Latin America. Our study uses a Synthetic Control Methodology (SCM) to measure the EITI's impact on several measures of corruption in the first five Latin American countries to join the initiative: Colombia, Guatemala, Honduras, Peru, and Trinidad and Tobago. The method allows us to assess the magnitude and statistical significance of the EITI's effect on perceived corruption at each stage of implementation. Our results cast doubt on how decisive the scheme has been in combatting corruption. In the vast majority of cases, participation in the scheme either had no statistically significant effect or even coincided with marginally increased corruption levels (only in very few cases it was associated with temporary minor improvements). Taken together, the results indicate that joining EITI did not lead to a substantial decrease of corruption in any of the countries under scrutiny.

Shelter in place? Depends on the place: Corruption and social distancing in American states.

We investigate the links between corruption and compliance with social distancing during COVID-19 pandemic in America. Both theory and empirical evidence point to a corrosive effect of corruption on trust/social capital which in turn determine people's behavior towards compliance with public health policies. Using data from 50 states we find that people who live in more corrupt states are less likely to comply with so called shelter in place/stay at home orders. Our results are robust to different measures of corruption.

Network Structure Identification From Corrupt Data Streams

Complex networked systems can be modeled as graphs with nodes representing the agents and links describing the dynamic coupling between them. Previous work on network identification has shown that the network structure of linear time-invariant (LTI) systems can be reconstructed from the joint power spectrum of the data streams. These results assumed that data is perfectly measured. However, real-world data is subject to many corruptions, such as inaccurate time-stamps, noise, and data loss. We show that identifying the structure of linear time-invariant systems using corrupt measurements results in the inference of erroneous links. We provide an exact characterization and prove that such erroneous links are restricted to the neighborhood of the perturbed node. We extend the analysis of LTI systems to the case of Markov random fields with corrupt measurements. We show that data corruption in Markov random fields results in spurious probabilistic relationships in precisely the locations where spurious links arise in LTI systems.

Political corruption and corporate payouts

Firms headquartered in more corrupt US environments (states) provide higher payouts to their shareholders. Our results are robust to, for example propensity score matching, instrumental variable approach, headquarters relocations, quasi natural experiments using exogenous shocks, use of alternative measures of corruption and payouts, use of additional (possibly omitted) variables, and various alternative explanations based on additional channels and moderating factors. Our study finds that the use and marginal value of dividend payout as a shielding channel is affected by state-level corruption. Our study also adds geographic-based shielding as another important motivation for firms to make corporate payouts.

A Robust Bayesian Approach for Online Filtering in the Presence of Contaminated Observations

This article proposes an online scheme for state estimation of a generic class of nonlinear dynamical systems in the presence of abnormal measurement data from sensors. We thoroughly illustrate why the performance of standard recursive Bayesian inference degrades in the presence of any measurement distortion. After demonstrating how different abnormalities can be accommodated explicitly inside a generic state-space model, we propose a robust mechanism to perform recursive Bayesian inference on the presented model to not only detect but also mitigate the effect of corrupted measurements in the final state estimates. Using simulations and experimentation, we demonstrate the success of the proposed framework in reducing the impact of different types of distortions in measurements. The ability to tackle different kinds of measurement abnormalities during online inference sets the proposed method apart from the existing techniques.

Makroekonomik Performans Göstergelerinin Yolsuzluğa Etkisi

“Kamu gücünün özel çıkarlar için kötüye kullanılması” olarak tanımlanan yolsuzluk ekonomik, politik, hukuki ve sosyo-kültürel belirleyicileri olan bir kavramdır. Ülkeden ülkeye farklılık gösteren yolsuzluğun ölçümü ise pek mümkün olmamakla birlikte yolsuzluk algı ölçümü yapılabilmektedir. Çalışmanın amacı söz konusu belirleyicilerden yalnızca ekonomik belirleyicilerin yolsuzluk ile ilişkisini test etmektir. Bu kapsamda 2001-2017 dönemi için APEC (Asya Pasifik Ekonomik İşbirliği) ülkelerinde makroekonomik performans göstergelerinin yolsuzluğa etkisi panel sıralı nitel tercih yöntemi ile analiz edilmiştir. Makroekonomik performans göstergeleri büyüme, enflasyon, işsizlik, gelir eşitsizliği ve dışa açıklık olarak belirlenmiş, dışa açıklık değişkeni ticari küreselleşme endeksi ile tanımlanmıştır. Yolsuzluk algı endeksi bağımlı değişkendir ve endeksin en yüksek değeri 0, en düşük değeri 10’dur. Bağımlı değişken olarak kullanılan yolsuzluk algılama endeksi sıralı bir değişken olduğu için sıralı nitel tercih modelleri kullanılmıştır. Ekonometrik analizler sonucu elde edilen bulgulara göre kişi başına GSYH ve ticari küreselleşme endeksi arttıkça yolsuzluk endeks değeri de artmakta, diğer bir ifadeyle yolsuzluk azalmaktadır. Enflasyon oranı ve Gini katsayısı (gelir eşitsizliği) arttıkça yolsuzluk endeks değeri azalmakta, yolsuzluk artmaktadır. İşsizlik oranı arttıkça yolsuzluk endeks değeri önce artmakta (yolsuzluk azalmakta), sonra azalmaktadır (yolsuzluk artmakta). Çalışmada makroekonomik performans göstergelerinin yolsuzluğun düşük düzeylerinde daha etkili ve düşük yolsuzluk düzeyini etkileme olasılığının ise daha yüksek olduğu sonucu elde edilmiştir. Dolayısıyla gelir seviyesini artırabilen ve bunun adil dağıtımını sağlayarak işsizliği azaltan, dünya ekonomisi ile entegrasyon derecesini yükselten ve enflasyon oranını düşük tutabilen ülkelerde yolsuzluğun da düşeceği ortaya koyulmuştur.

Social mechanisms for countering corruption in the digital society’s youth environment

The need to study the specifics of the phenomenon of corruption and anti-corruption measures in a digital society has been substantiated in the article. Based on the analysis of legislation, a sociological interpretation of the concepts of corruption, corruption prevention, indicators of corruption practices, and anti-corruption mechanisms is carried out. Each concept is presented both in its essential form and as a set of social parameters to be studied. The results of the analysis of the source base on anti-corruption issues and characteristics of the digital society have been presented. Information technology and information and communication indicators of social diagnostics of digital society problems have been described separately. The characteristic of sociological research conducted by the authors has been given and also the results of ranking and of determining the weight characteristics of such anti-corruption mechanisms have been outlined, as: the inevitability of responsibility for corruption offenses, publicity and openness of activities of state bodies and bodies of local self-government, implementation of the principles of “legality” and “recognition, maintenance and protection of fundamental human and civil rights and freedoms in Russia”, the integrated use of political, organizational, awareness-raising, socio-economic, legal, special and other measures, priority application of measures to prevent corruption, creating attitudes among the population not to accept corrupt actions as a way to solve their problems, forming a legal consciousness among young people that rejects corruption as an acceptable form of behavior and acceptable social practice for achieving success in life, cooperation between the state and civil society institutions, international organizations and individuals, development of digital technologies and virtual services in the system of corruption prevention, training and training of personnel in the field of theory and practice of corruption prevention, creation of public councils under the authorities with the participation of representatives of civil society, public opinion leaders, scientists, artists to develop measures to prevent corruption. Priority scientific problems, the development of which can increase the effectiveness of social mechanisms used to prevent corruption among young people, have been explained by the authors: development of legal anti-corruption foundations, research of socio-psychological methods of forming students’ legal awareness, conceptualization of scientific data on the use of digital technologies for social development.

Perception vs. experience: Explaining differences in corruption measures using microdata

Abstract: Most corruption research suffers from one common problem: There is no objective measure of public-sector corruption for a cross-section of countries. Studies on the determinants or the effects of corruption typically rely on indicators of corruption perception. In recent years, a second type of indicator reflecting experience with bribery has become available. If corruption perception is primarily informed by experience with corruption, these two types of indicators should be very highly correlated, which they are not. This study examines the variation in individual corruption perception that cannot be explained by individual corruption experience alone. We find that both respondent characteristics and country characteristics affect corruption perception beyond what can be explained by individuals’ first-hand experience of corruption. Some of these biases may force us to reevaluate results of corruption research that is based on perception data, as well as the anti-corruption policies designed in response to these results.

Foreign equity portfolio flow and corruption: A cross‐country evidence

AbstractThis study examines the impact of foreign equity portfolio investment on corruption. Employing a large dataset of 44 countries from 2001 to 2015 and three different measures of corruption, our results show that foreign investors from well‐governed countries tend to foster public accountability, reduce asymmetry information and corruption. We find empirical evidence that foreign equity portfolio investment interacts with stock market development and central bank transparency to reduce corruption. Our results suggest that stock market development and central bank transparency are regarded as complementary by international portfolio investors. Further analysis indicates that corruption appears more prevalent in countries where domestic investors dominate the stock market. Our results are robust to endogeneity using dynamic generalized methods of moments (GMM). The findings suggest that attracting foreign equity investors reduces corruption, implying significant benefits for portfolio diversification.

Obesity of politicians and corruption in post‐Soviet countries

AbstractWe collected 299 frontal face images of 2017 cabinet ministers from 15 post‐Soviet states (Armenia, Azerbaijan, Belarus, Estonia, Georgia, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Moldova, Russia, Tajikistan, Turkmenistan, Ukraine and Uzbekistan). For each image, the minister's body‐mass index is estimated using a computer vision algorithm. The median estimated body‐mass index of cabinet ministers is highly correlated with conventional measures of corruption (Transparency International Corruption Perceptions Index, World Bank worldwide governance indicator Control of Corruption, Index of Public Integrity). This result suggests that physical characteristics of politicians such as their body‐mass index can be used as proxy variables for political corruption when the latter are not available, for instance at a very local level.

The influence of corruption on environmental sustainability in the developing economies of Southern Africa

This paper analyses the impact of corruption on environmental sustainability in all 16 countries in the Southern region of Africa from 2010-2017. The paper uses two proxies of corruption: the Corruption Index and Corruption Ranking. Using two econometric methods, namely, the Dumitrescu and Hurlin (2012) Granger causality test and the Generalised Method of Moments (GMM) techniques this study found largely congruent results on both causation and relationships, respectively. Firstly, the two indicators of corruption harmoniously show that corruption Granger causes the existing state of environmental sustainability in Southern African economies, and vice-versa. Moreover, in the short-run corruption was also found to worsen environmental sustainability for both regression models deployed using the two corruption indicators. In the long-term, the two measures of corruption conflicted with their findings. In this regard, though the relationship is contradicting in the long-run the corruption negative (becoming bad) effect of corruption ranking surpasses the corruption positive (becoming clean) effect of corruption index by nearly three times. This show how detrimental corruptible actions are to the natural environment. Overall, this paper consent to global reports explaining how Southern African environments are gradually deteriorating by putting corruption as one central practice causing extensive damage.

U.S. POLITICAL CORRUPTION AND LOAN PRICING

AbstractUsing U.S. Department of Justice data on state‐level political corruption, we find that banks charge higher loan spreads (all‐in‐drawn spreads) to firms in states with higher corruption and that these effects are more pronounced for firms facing financial constraints but less pronounced for firms experiencing greater external monitoring. These results are robust to additional controls, alternative corruption measures, a measure of the lack of oversight of lobbyist activities, and the use of instrumental variables. Overall, our findings are consistent with the harmful corruption environment hypothesis, which states that banks charge higher loan spreads to firms in states with greater political corruption environments as these firms are susceptible to making suboptimal financial decisions to fend off rent‐seeking behavior.

The Impact of Corruption on Economic Growth and Innovation in an Economy in Developed European Countries

<p>Theoretical background: The article explores the relationship between corruption and innovation in an economy and between corruption and economic growth. The multi-faceted and complex nature of corruption means that the impact of corruption on innovation and economic growth is unidirectional. There are arguments in the literature for both positive and negative effects of corruption on macroeconomic fiures. Most empirical research confirms the linear negative impact of corruption on economic growth. These results are the opposite of theoretical arguments that there may be both positive and negative consequences of corruption. Purpose of the article: The research aim is to analyse the theoretical aspects of the impact of corruption on selected macroeconomic variables. This goal was achieved by analysing the most signifiant arguments describing the relationships between chosen variables. Based on the literature analysis, research hypotheses were developed, and they were verifid in an empirical study. The results were analysed in the discussion section. Research methods: The study is based on a set of data on economically developed countries in Europe from 1996 to 2017. The empirical study was conducted using basic statistical measures – descriptive statistics and correlation coefficient, whereas econometric models were based on the GMM system (Generalized Method of Moments). Main findings: The results of this research show that the relationships between corruption and the measure of innovation, and corruption and economic growth are not linear. They take the form of a parabola. This means that the influence of corruption on innovation and economic growth is not the same for all levels of the corruption indicator. The relationship between corruption and economic growth is specific enough to show that a low level of corruption is economically justified from the point of view of empirical research. This is possible because corruption solves other economic problems, such as bureaucracy, which limits development. Corruption will support economic growth if the state does not work properly.</p>

ENGAGING PEOPLE, ENABLING TECHNOLOGY: CITIZEN’S PERSPECTIVES ON ANTI FRAUD MEASURESIN THE INDONESIAN PUBLIC SERVICES SECTOR

This research aims to synthesise citizen’s perspectives on anti fraud measures that are currently implemented in the Indonesian public services sector. In this sector, various measures to eradicate fraud/corruption have been initiated by the government despite the fact that such practices are still apparent. Two research questions were proposed; first, what are Indonesian citizens’ perspectives on the anti fraud/corruption efforts implemented by the government, in the Indonesian public services sector during the last three years? Second, according to their perspective, which approach on anti fraud/corruption measure that is considered as the most effective way to eradicate fraud and corruption?. Using questionnaires, the research collect responses from 188 respondents – Indonesian citizen older than 21 years old - in 5 cities in Indonesia. The respondents perceive that despite of its low improvement on corruption level, as reflected by the Corruption Perception Index (CPI) score, the anti fraud/anti corruption measures implemented in the Indonesian public service sector are well progressing. The research also reveals that despite of currently low public participation in anti fraud/anti corruption measures, three factors i.e. consistent law enforcement, engaging public participation and implementing information and communication technology (ICT) are perceived as the most effective measures in anti fraud/anti corruption effort. Understanding the importance of those avenues will provide imperative emphasis in designing, formulating and evaluating anti fraud/anti corruption measures, particularly in the Indonesian public services sector. This will in turn provide necessary support for the government to achieve a positive and sustainable economic growth.

Corruption and Life Satisfaction in Transition: Is Corruption a Social Norm in Eastern Europe?

To explain a so-called “happiness gap” between citizens of Eastern Europe and comparable individuals from other regions, researchers have pointed at low governance quality, and corruption in particular, as a possible cause. However, this explanation seems incompatible with the “broken windows” paradigm, which posit that in high-corruption environment, victims of corruption tend to report a lower psychological cost of victimisation. Our paper contributes to the literature by explicitly tackling this potential contradiction. Our results nuance our understanding of the role of corruption on people’s life satisfaction in Eastern Europe by investigating the extent to which the subjective cost of corruption depends on its pervasiveness. We demonstrate: (1) large individual cost associated with different measures of corruption, (2) a small reduction in these costs for some measures of corruption as it becomes more pervasive and (3) large inequalities in the cost of corruption depending on education and income. Overall, we conclude that, for the population as a whole, there is limited evidence of corruption being a social norm in Eastern Europe, in the sense that pervasiveness does not reduce individual cost.

Anti – Corruption Measures Related to Migration Pressure

Abstract The report analyzes corruption practices and the manifestation of international organized crime in the sphere of illegal migration. Emphasis is placed on the criminal components “human trafficking” and “channeling” included in the Criminal Code of the Republic of Bulgaria. The current legislation of the Republic of Bulgaria regarding the prevention and counteraction of human trafficking is also examined.

A Machine Learning Approach to Analyzing Corruption in Local Public Finances

Can machine learning support better governance? In the context of Brazilian municipalities, 2001-2012, we have access to detailed accounts of local budgets and audit data on the associated fiscal corruption. Using the budget variables as predictors, we train a tree-based gradient-boosted classifier to predict the presence of corruption in held-out test data. The trained model, when applied to new data, provides a prediction-based measure of corruption that can be used for new empirical analysis or to support policy responses. We validate the empirical usefulness of this measure by replicating and extending some previous empirical evidence on corruption issues in Brazil. We then explore how the predictions can be used to support policies toward corruption. Our policy simulations show that, relative to the status quo policy of random audits, a targeted policy guided by the machine predictions could detect almost twice as many corrupt municipalities for the same audit rate. Similar gains can be achieved for a politically neutral targeting policy that equalizes audit rates across political parties.

Press Freedom and Corruption Perceptions: Is There a Reputational Premium?

Many studies find a strong association between press freedom and corruption perceptions (Adsera, Boix, & Payne, 2003; Brunetti & Weder, 2003; Freille, Haque, & Kneller, 2007). However, it is possible that this relationship is driven by experts’ belief that limits on press freedom are associated with corruption. This article tests the association between press freedom and corruption perceptions using objective measures of corruption from the World Bank’s Enterprise Surveys, a series of representative surveys of the owners and top managers of private firms in the manufacturing and service sectors. Our findings suggest that there is a reputational premium associated with press freedom: Holding corruption experiences constant, corruption perceptions are improved by greater press freedom. Moreover, we find that the developed world is best placed to avail of this premium, as it is most evident in countries with low to moderate levels of corruption by global standards.