Lower Levels Of Corruption Research Articles

How does auditing outgoing officials' natural resource asset management policies affect carbon emission efficiency? Evidence from a debiased machine learning model

Reducing carbon emissions to improve environmental quality has been the Chinese government's unwavering dedication in recent years. Several policies have been implemented with the objective of driving carbon reduction. The implementation of the outgoing leadership natural resources audit policy has played a pivotal role in encouraging local government officials to prioritize both economic and environmental development in their pursuit of performance metrics. However, whether the implementation of this policy contributes to an enhancement in carbon emission efficiency requires further empirical validation. This study, utilizing panel data from 282 cities across China, explores the potential impact of the audit policy (specifically referring to the outgoing leadership natural resources asset audit policy, without ambiguity) on carbon emission efficiency through the application of a debiased machine learning model. The results of the study show that the audit policy has been crucial in greatly raising the regional level of carbon emission efficiency. Furthermore, mechanistic analysis results suggest that the audit policy can enhance regional carbon emission efficiency by influencing green innovation and raising government environmental awareness and green financial levels. Based on the heterogeneity analysis, the regions east of the Hu Line, cities with low levels of corruption, less stringent economic growth objectives, and areas with high levels of public environmental concern are the areas where auditing rules have the greatest influence on carbon emission efficiency. In conclusion, based on the comprehensive results of this study, a series of policy recommendations are presented to further advance China's efforts in carbon reduction, ultimately achieving a more sustainable balance between economic and environmental development objectives.

Determinants of experiences and perceptions of corruption: A case study of Russian regions

In this article, the main determinants of experiences and perceptions of corruption in the Russian regions are analyzed. The research focuses on evaluating the determinants of corruption among ordinary people and business representatives in three regions of Russia. The main objectives of the research are: to reveal the relationship of individual characteristics and attitudes toward corruption with citizens’ actual experiences and perceptions of corruption; to learn how experiences and perceptions of corruption influence each other. The main conclusion is that the experience of corruption and its perception are interrelated. Those members of both the general public and the business community who perceive the prevalence of corruption to be high report experiencing corrupt practices more often than those who see a lower frequency of corruption. People who justify corruption are more likely to report encountering bribery and other low-level corruption practices. For business corruption, tolerance of corruption shows a significant link with perception of corruption, but not with real experiences of corruption. Social learning theory and victimization theory can explain the interdependence of perceptions and experiences of corruption in the Russian regions. The indicators of both perception and experience of corruption in the research can be used as indirect measures of corruption. Their interrelation in the same survey may also indicate their validity as instruments for measuring corruption.

Participatory Democracy in Southern Africa: Explaining Botswana’s Exceptionalism

Botswana has had fair and stable elections since its independence in 1966. It has a relatively high standard of living, a relatively well-functioning welfare state, and relatively low levels of government corruption. Voter participation is among the highest in the world, topping 80 percent in the past elections. Access to education and healthcare is free to all citizens. How can we best explain Botswana’s exceptionalism in the political, economic, and social realms, and what policy lessons does the case of Botswana contain? This article shows that it is Botswana’s millennial tradition of direct village democracy, kgotla, that best explains its exceptional performance. I visited Botswana in May of 2023 to evaluate the importance of participatory democracy in Botswana and assess its explanatory power. When comparing local participation to other, potentially relevant causal factors, I find that local political participation provides the most robust explanation for good governance in Botswana. In Botswana, citizens are able to hold their elected officials accountable, learn how politics works by acquiring the necessary technical knowledge (techne) through participating in regular, monthly public assemblies, and, as a result, make better-informed political decisions.

Corruption’s Crossroads: Exploring Firm Performance and Auditors’ Role in Emerging Markets

This study examines the relationship between country-level corruption (proxied by the Corruption Perception Index, CPI) and firm performance (measured by Return on Assets, ROA) across 18,286 firms in the East Asia, South Asia, and Southeast Asia regions. Additionally, the moderating effects of audit quality (proxied by auditors’ reputation) on the relationship are examined. The findings of the study indicate a positive association between corruption and ROA in high-income nations, thus providing evidence in favor of the “greasing the wheel” theory. On the other hand, a negative association is documented in the upper middle- and low-income nations, which is consistent with the “sanding the wheel” notion. Notably, audit quality has a positive moderating influence on the relationship between corruption and ROA, especially in nations with low corruption levels, reaffirming the pivotal role of reputable auditors in enhancing firm performance within these economic contexts. The results of this study have important ramifications for forming policy suggestions and enhancing governance. The findings highlight the opportunity to improve governance practices and regulations to reduce corruption and increase transparency. Policymakers can develop ways to strengthen institutional frameworks by recognizing the complex link between corruption, corporate profitability, and the function of respected auditors.

Foreign Direct Investment (FDI), Computer Information Technology, Corruption Perceptions, Economic Growth, and Trade Openness in BRICS Countries

Given a Indonesia’s openness and exposure to the foreign direct investment (FDI), the current study focusses on FDI, particularly inbound from it, as one of the major local and global factors that affect its economy. There are different viewpoints regarding the this effect because some see it from a positive, optimistic point of view, while some have a negative, pessimistic view that are presented researchers impartially. The goal of this research is to examine FDI, computer information technology, corruption perceptions, economic growth, and trade openness in BRICS countries using panel data from 1990 to 2021. The data used is incoming Foreign Investment data to the BRICS countries. We use the Panel Least Square (PLS) method. Results show that computer information technology, Corruption Perceptions, Economic Growth, and Trade Openness encourage FDI in BRICS countries. The development of information and computer technology has had a significant impact on increasing FDI. The low level of corruption increases investor confidence which has a positive influence on raising the FDI in BRICS countries. Economic growth is certainly an attraction for investors to invest, supported by Trade Openness. Keywords: Foreign Direct Investment (FDI), Computer Information Technology, Corruption Perceptions, Economic Growth, Trade Openness

Revisiting the nexus between corruption and gender: does women’s political participation in parliament matter?

ABSTRACT The study aims to empirically verify the hypotheses that the increase in the share of women legislator in politics has the potential to reduce levels of corruption within the Parliament and overall political corruption levels. Using data from the Varieties of Democracy (V-Dem) platform, fixed effects, and generalised method of moments (GMM-System) models are estimated for a set of 154 countries between 1995 and 2018. The results show that when considering corruption within the legislative house, the greater share of women in politics is associated with lower levels of corruption. Even after controlling for various societal factors, the results confirm the positive effect of women’s participation in parliament on the decline of corruption. Yet, this effect does not seem to spill over into other branches of government and sectors of the public sphere. When considering the level of more general corruption, it responds much more to variations in structural aspects, as democratic maturity and equality in the distribution of political power among different socioeconomic strata, than to women’s participation in parliamentary seats.

Institutional, economic and cultural safeguards against corruption: a panel study of OECD countries

Purpose The purpose of this paper is to ascertain whether the combination of anti-corruption measures, with simultaneous impact on the institutional, economic and cultural dimensions, is associated with lower levels of corruption. Design/methodology/approach The authors have developed a research that seeks to find statistical evidence of the relationship between levels of corruption and combinations of anti-corruption measures. To test the hypotheses, the authors performed panel regression analysis using different panel estimation methods, namely, fixed effects (FE) models. Findings The results do not fully support the idea that the combination of anti-corruption measures with simultaneous impact on the institutional, economic and cultural dimensions has more impact on corruption levels than other measures taken singly, but rather that the most determining factor in preventing corruption lies in government effectiveness. Originality/value The relevance of this study lies in the shortcomings of this type of research applied to anti-corruption measures. Moreover, the development of panel data analysis makes it possible to approach the phenomenon from a double perspective, over time and in comparative terms between different countries, incorporating non-immediate effects and possible interactive effects between different anti-corruption measures.

Comparative Analysis of Bribery Laws and Implications

In light of the Global Peace Index's recognition of Denmark, New Zealand, and Finland as nations with excellent governance standards and low levels of corruption, this study compares the bribery laws and their effects in these three nations. Denmark's legislative system strictly prohibits bribery in the public and private sectors, as outlined in particular provisions of its Criminal Code. In line with international anti-corruption conventions including the OECD Convention and EU Criminal Law Convention, provisions prohibit both active and passive bribery. Similarly, New Zealand's approach to bribery is broad, extending its authority extraterritorially, and penalising offenders severely. It is largely handled by the Crimes Act 1961 and Secret Commissions Act 1910. Finland, on the other hand, has a thorough legislative approach that is scattered throughout its Criminal Code and covers fraud, bribery, and other corrupt practices. This strategy is in line with Finland's resolve to fight corruption by enacting specific laws and enforcing strict penalties—which include fines and jail time in more serious cases.The methodology employed is qualitative in nature and entails a thorough examination of statutory texts, case law, and international agreements. Secondary sources, such as government reports and scholarly literature, are also consulted. A detailed investigation of how each nation defines, prosecutes, and deters bribery is made possible by comparative legal analysis, which takes into account contextual elements like historical evolution, the socio-political climate, and international commitments. This study advances our knowledge of how well legal frameworks function to prevent corruption, advance transparency, and build public confidence in the public and private sectors of the economy. The comparative analysis provides valuable insights that guide efforts to strengthen anti-corruption measures worldwide. These tactics highlight the significance of strong legislative frameworks that are customised to national circumstances in order to maintain integrity and accountability in government.

Digitalization and foreign direct investment performance: The moderating role of corruption and judicial independence

The aim of this paper is to investigate the relationship between digitalization and foreign direct investment (FDI) and test whether corruption (COR) and judicial independence (JUD) moderate this relationship. The sample contains 114 countries during 2016. The author obtains FDI data from the World Development Indicator (WDI) database, which was published by the World Bank in 2016. The World Bank’s digital adoption index (DAI) for 2016 was used to collect digitalization proxies. Finally, the remaining variables are gathered from the Global Competitiveness Report for the same year. Results show a positive and significant association between digitalization and foreign direct investment. This positive association remains stable and more pronounced and significant in countries with low levels of corruption, while it becomes weak and non-significant in countries with high levels of corruption. When the moderating effect of judicial independence is tested on the association between digitalization and foreign direct investment, the positive association between the two variables remains positive but more pronounced and significant in countries with high judicial independence systems, while it becomes low pronounced and non-significant in countries with low judicial independence systems. The findings emphasize the importance of decreasing corruption and strengthening judicial independence in order to maintain the positive relationship between digitization and FDI. Therefore, investors prefer stable environments with transparent legal systems, making anti-corruption policies and independent judiciaries critical in attracting and retaining FDI. These initiatives promote trust, foster a favorable business climate, and ensure that digitalization contributes to long-term economic progress.

Child Labor, Corruption, and Development

Abstract Employing an overlapping generations model with endogenous education choice and corruption, we investigate how child labor and corruption influence human capital accumulation and development. We show that multiple steady states exist in the economy. One steady state has a high level of human capital, while the other has a low level of human capital. In the steady state with a low level of human capital, child labor and corruption exist, fertility and child mortality rates are high, and the welfare level is low. Conversely, in the steady state with a high level of human capital, child labor and corruption are diminished, fertility and child mortality rates are low, and welfare is high. In addition, we show that it is difficult to steer an economy away from a poverty trap with child labor and corruption because bureaucrats of the current generation are opposed to policy changes, such as the reinforcement of monitoring and penal regulations. However, we highlight the possibility for the government to develop the economy in the poverty trap by implementing an education policy, which is Pareto improving.

The efficacy of green finance for environmental sustainability: Does control of corruption makes a difference?

Green finance (GF) plays a crucial role in reducing greenhouse gas (GHG) emissions and promoting environmental sustainability (ES). However, the efficacy of GF may vary, depending on several factors, particularly the extent of control of corruption. This study investigates the effect of control of corruption on the efficacy of GF using data on 37 Asian countries for the period 2000–2020. The results demonstrate that the efficacy of GF in reducing the GHG emissions and improving ES in a country depends on the level of corruption there. Specifically, GF has a significant GHG reduction effect in the presence of strong corruption control or low corruption levels. These findings remain robust to several robustness checks, including alternative measurements of ES and corruption control and different estimators. This highlights the significance of enhancing control of corruption at the national level to optimize efficient utilization of GF resources and advancing ES. The study also presents policy implications based on these findings.

Systems of innovation: Path of economic transition and differences in institutions in central and Eastern Europe?

AbstractAgainst the backdrop of the current political developments in Central and Eastern European (CEE) countries, such as Ukraine, Poland, and Romania, the question arises as to the role played by economic transformation and the resulting innovation linkages in these countries over the last 20 years. The main purpose of this paper is to explore the impact of economic and institutional dimensions on the development of CEE countries, explicitly distinguishing between European Union (EU) members and non‐members, and thus reflecting the differences in institutions and path dependency. Furthermore, the paper contrasts the performance of CEE countries with that of Western European countries. To achieve these objectives, the impact of factors such as innovation, institutions, and political practices on the economic development of 37 European countries from 2000 until 2020 is followed using fixed effects regression and Ordinary least squares (OLS) regression. The results of the analysis show the importance of institutional factors such as low levels of corruption, political freedoms, and intellectual property. The effect of institutional variables was particularly pronounced in the case of non‐EU countries, which indicates the particular importance of the development of stable institutions for achieving higher levels of economic development for this category of countries.

Financing of the agricultural industrial complex of Ukraine: problems and prospects

The paper is devoted to the analysis of the financing of the agro-industrial complex of Ukraine, the identification of problems and prospects of this process. During the research, methods of a scientific and empirical nature were used the collection and comparison of information, as well as complex analytical methods, which include synthesis and generalization. The informative basis of the paper is the scientific works of domestic and foreign scientists who consider the issue of financing the agro-industrial complex and the problems associated with its development. The paper noted that Ukraine with its fertile land has great potential for the growth of this sector of the economy. However, the unconscious and inefficient use of natural resources, as well as internal and external economic challenges put it at risk. Factors that hold back the development of this industry include insufficient financing, lack of available credit, low level of investment, bureaucratic obstacles, corruption and instability, infrastructure problems. The experience of foreign countries can be useful for Ukraine in the field of state support of the agro-industrial complex. The conclusion emphasizes that financing the development of the domestic agricultural sector is an urgent problem that requires a comprehensive approach. To ensure the sustainable development of the industry, it is necessary to increase state support, expand lending programs on favorable terms, support scientific research and development of agricultural technologies. Tax incentives for agricultural producers and the development of processing of agricultural products can contribute to an increase in added value and the number of jobs. Strengthening the financial stability of the sector and increasing the export potential of products with high added value can have a positive effect on the country's economy and ensure the sustainable growth of agriculture. A close relationship between state institutions, enterprises and scientific institutions is necessary for the successful implementation of these measures.

Europe around the corner? How border proximity and quality of government explains European identity

Do citizens that live close to the border of another European country feel more European? We suggest that border proximity affects European identity formation, but that the positive effect of border proximity is confined largely to areas where citizens live close to regions with better quality of government and lower levels of corruption. Using our newly collected individual level and post-coded data from the most recent wave of the European Quality of Government survey, covering over 129,000 respondents in all 27 European Union member countries, we show that citizens that live close to the border of another country express a stronger European identity, all things being equal. Yet the effect is driven largely by citizens that live adjacent to regions with relatively higher/lower quality of government compared to their own region. Our study thereby contributes to a closer understanding of where and why citizens become attached to Europe, and if and how benchmarking institutional performance and quality of government affect citizens’ willingness to belong to, and identify with, Europe.

Willingness to Fight for One’s Own Country: New Variables to Look at the Estonian Leadership among the Baltic States

The article delves into the willingness of citizens in the Baltic States, particularly Estonia, to fight for their countries in the face of rising threats, notably the Russian threat following the Crimean annexation. With historically weaker NATO defenses and relatively small armed forces, Baltic States like Lithuania, Latvia, and Estonia rely on allied support and their residents’ determination to defend their homeland. The study explores variables that influence this willingness, focusing on Estonia’s leadership in this aspect. The article consists of three main sections: a literature review, a comparative case analysis, and conclusions. The literature review examines past data from global, regional, and national perspectives, touching upon the theories of renowned researchers like Ronald F. Inglehart. The comparative case analysis delves into new variables—civic engagement, government functionality, and corruption levels—exploring their correlation with citizens’ readiness to fight for their country. The analysis uncovers distinct patterns in Estonia, which consistently outpaces Latvia and Lithuania in civic engagement, efficient governance, and lower corruption levels. Ultimately, the research emphasizes that civic engagement positively associates with willingness to defend one’s country, exemplified by Estonia’s higher voter turnout and volunteering rates. Effective government functioning also contributes to citizens’ willingness to fight, with Estonia’s robust governance over the past decades potentially boosting resilience. Furthermore, low corruption levels appear to enhance citizens’ confidence in their state, potentially encouraging them to defend it. The study concludes that understanding these multifaceted factors can guide policymakers and community leaders in bolstering citizens’ determination to protect their countries, particularly in Latvia and Lithuania.

Government Fund Distribution and Tracking System using Blockchain Technology

Governments must address a wide range of governmental responsibilities. State government operations require many transactions related to various functions that must be carried out throughout the state. This comprises new projects, repairs and maintenance, contract awards, government employee salaries, farmer programmes, and so on. The low-level corruption that is sometimes impossible to trace is a key impediment to the state's success. Because of the existing system, tracking it is a challenging effort.We propose in this paper a smart system for tracking money granted to the state government as they move through the government process at each stage.We employ blockchain technology to safeguard transactions at every level while retaining transparency and sealing every transaction with proofs as the funds go forward. Blockchain, or block chain, is a growing set of documents called blocks that are linked together via encryption. Each block contains the previous block's cryptographic hash, a timestamp, and transaction data.

The Potentials of Waqf to Attain Youth Empowerment for Low Level of Corruption and Peaceful Coexistence in Kano, Nigeria

Abstract
 The study was aimed to explore the potential roles of waqf institutions in the provision of youth empowerment for low level of corruption in Kano State. The low level of corruption is one of the pillars of positive peace. Youth unemployment, lack of resources, lack of funding resulted in high corruption in the society, and this resulted in the increase in crime rate, insecurity and social vices among the youth in the state. The thread, insecurity situations, poverty, unemployment and deplorable conditions in Kano are at alarming rate, there are several cases of criminal activities among the youth which includes, thuggery, theft drug abuse among others this is due to unemployment, illiteracy and poverty. The youth’s conditions in Kano needs urgent attention to salvage the peace and tranquility of the state. Methodology -the research uses the qualitative approach to examine the potential role of waqf in addressing these issues and recommends the ways which waqf funds used to efficiently empowered the youth, Whereas, the interview was conducted, and the data were analyzed thematically. Findings- The waqf has the potentials in addressing the menace of unemployment, insecurity and other social vices among the youth in kano, lower the level of corruption and established peace. The study concluded that, waqf institutions has the potential role in addressing youth empowerment for the low level of corruption and peaceful coexistence in the state.

Inflation and income inequality linkages: do institutions matter?

ABSTRACT The effect of inflation on income inequality is uncertain in both theoretical and empirical literature. This article investigates whether institutions matter in this relationship, using the corruption perception index and economic freedom index as representatives. The article focuses on the two-step system generalized method of the moments results from 2012 to 2018 for 58 countries; however, for the sake of comparing results, pooled ordinary least squares, fixed effect estimations and difference generalized method of moments are employed. The findings suggest that inflation has a robust negative effect on income inequality. Good institutions, low corruption and high economic freedom levels lead to income inequality, and their overall effect shows that (i) a decrease in corruption and an increase in economic freedom cause the effect of high inflation turn positive on income inequality, (ii) high inflation rates eliminate good institutions’ reducing effect on income inequality. The study contributes to the limited literature on the relationship between inflation and income inequality. It distinguishes itself from the literature by examining the role of institutions in this relationship by using corruption and income inequality together.

Interconnections assessment of banking capitalization with macroeconomic stability, including corruption and shadow economy

The research focuses on bank capitalization and macroeconomic stability, including corruption and the shadow economy. A well-capitalized banking system and a low corruption level are important for maintaining macroeconomic stability and reducing the size of the shadow economy. The paper is aimed at assessing the relationship between bank capitalization and macroeconomic stability, which includes corruption and shadow economy through canonical analysis. The research is conducted on the basis of financial and economic reporting of 35 countries with different levels of socio-economic development during 2010–2021 based on data from the World Bank and the European Central Bank. The main input blocks macroeconomic stability – corruption – shadow economy are characterized. During the research, the following tools were used: – methods of grouping, analysis and comparison in determining the characteristics of the elements of the chain «level of capitalization of the banking system – macroeconomic stability – corruption – shadow economy»; – factor analysis by applying the method of principal components in the selection of statistically significant indicators of the bank capitalization level and macroeconomic stability. The quantitative assessment of the bank capitalization level revealed the following dependencies: there is a strong correlation between return on assets and the level of non-performing loans, return on assets and return on equity. Using the principal components method, the following statistically significant indicators of macroeconomic stability were identified: GDP, Gini index, corruption perception index, corruption control index, and political stability index. Research, based on the canonical analysis, determined that 71.1% of changes in macroeconomic stability indicators are explained by fluctuations in the level of bank capitalization. The level of non-performing loans has a negative impact on macroeconomic stability, while the volatility of return on assets and return on equity has a greater positive impact on the development of the country's economy. The obtained results can be used by banks in the development of their resource and management policies, in the analysis of the volatility of capitalization level, by state bodies in the development of national policies of the country's economic development.

An empirical analysis of economic growth in countries exposed to coastal risks: Implications for their ecosystems

Using a novel database on countries exposed to coastal risks (CR), this paper estimates an augmented neoclassical growth model that encompasses eight other new growth models. To account for uncertainty related to the number of models and choice of growth determinant proxies, we use a Bayesian averaging of classical estimates (BACE) approach. A preliminary examination of the data reveals that a country that faces coastal risks is likely to be a former British colony characterized by a common law legal framework, a parliamentary political system, a high degree of international trade openness, little language and ethnic fractionalization, a low level of public sector corruption, and a high rate of fertility. The BACE-based model selection procedure shows that, in CR countries, the growth determinant proxies typically used in the neoclassical, macroeconomic policy, natural resources, and institutions theories are significantly correlated with growth. These results suggest two implications related to these countries’ coastal ecosystems. First, because they are heavily dependent on natural resources and have high fertility rates, these countries might seek short-term economic gains at the expense of deterioration in their ecosystems. Second, these countries’ good institutions and low levels of ethnic division might be conducive to sustainable management of these ecosystems.