Volume 7, Issue 4, December 2019, Page: 57-63
Determinants of Corruption in Middle East Countries: Evidence from Panel Data
Abdulwahab Abdulqader Alsarhan, Economics Department, Public Authority for Applied Education and Training, Kuwait City, Kuwait
Received: Oct. 25, 2019;       Accepted: Nov. 20, 2019;       Published: Nov. 25, 2019
DOI: 10.11648/j.ijebo.20190704.11      View  118      Downloads  46
Abstract
Corruption is as old as time, and it is really hard to find any country around the globe immune from corruption. According to World Bank (WB) and International Monetary Fund (IMF) corruption is defined as "the abuse of public or corporate office for private gain". Several decades ago, there were a number of studies conducted that provided significant determinants of corruption levels in many parts of the world. These variables that affect corruption can at times vary between regions. This study pinpoints some important factors that affect the corruption index in the Middle East countries. Based on data provided by Transparency International, the average number of corruption in the Middle East has recently become inflated. This study analyzes various economic and non-economic corruption determinants in the Middle East countries for the period between 2012 and 2018 using panel data to run two regression models. The results showed for economic variables that increasing in economic freedom, GDP per capita, and foreign direct investment significantly lead to decrease corruption phenomenon in the Middle East countries. whereas, the relationship between corruption and GDP growth, inflation, and openness trade index are statistically insignificant. Random effect panel data for non-economic variables model has been estimated. Unexpected relationship between democracy variable and CPI is stated, where higher democracy index leads to increasing in corruption in the Middle East countries. Education level and human development index have significantly effect on reducing corruption. Human development index should be increased by improve the level of the decent life among the societies. Even though the coefficient of female labor force is positive, it is statistically insignificant. Significant negative relationship between corruption and population as well as freedom index has been reported.
Keywords
Corruption, Middle East Countries, Panel Data
To cite this article
Abdulwahab Abdulqader Alsarhan, Determinants of Corruption in Middle East Countries: Evidence from Panel Data, International Journal of Economic Behavior and Organization. Vol. 7, No. 4, 2019, pp. 57-63. doi: 10.11648/j.ijebo.20190704.11
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Ades, A. and Tella, R. (1999). Rent, Competition, and Corruption. American Economic Review, Vol. 89, No. 4, September 1999 pp. 982-993.
[2]
Achim, M. (2017). Corruption, Income and Business Development. Journal for International and Entrepreneurship Development, Vol. 10, No. 1, March 2017.
[3]
Ata, A. and Arvas, M. (2011). Determinants of Economic Corruption: A Cross-Country Data Analysis. International Journal of Business and Social Science, Val. 2 No. 13, July 2011.
[4]
Bicchieri, C. and Ganegonda, D. (2016). Determinants of Corruption: A Socio-psychological Analysis. Cambridge University Press, 2016 academia.edu.
[5]
Bosco, B. (2016). Old and New Factors Affecting Corruption in Europe: Evidence from Panel Data. Economic Analysis and Policy, Vol. (114), June 2016.
[6]
Brunetti, A. and Weder, B. (2003). A Free press is Bad News for Corruption, Journal of Puplic Economics, Vol. 87, Iss. 7-8, August 2003 pp. 1801-1824.
[7]
Chen, H., Schneider, F., and Sun, Q. (2018). Size, Determinants, and Consequences of Corruption in Chiba's Provinces: The MIMIC Approach. CESifo Working Paper Series No. 7175 October 2018.
[8]
Dong, B. and Torgler, B. (2013). Causes of Corruption: Evidence from China. China Economic Review, Vol. 26, September 2013 pp. 152-169.
[9]
Drugov, M. (2010). Competition in Bureaucracy and Corruption. Journal of Development Economics, Vol. 92, July 2010 pp. 107-114.
[10]
Elbahnasawy N. (2014). E Government, Internet Adoption, and Corruption: An Empirical Investigation. World Development, Vol. 57, May 2014 pp. 114-126.
[11]
Elbahnasawy, N. and Revier, C. (2012). The Determinants of Corruption: Cross-Country-Panel-Data Analysis. The Development Economics, Vol. 50 No. 4, December 2012.
[12]
Frechette, G. (2001). An Empirical Investigation of the Determinant of Corruption: Rent, Competition, and Income Revisited. Canadian Economic Association Meeting, 2001. researchgate.net.
[13]
Ghaniy, N. and Hastiadi, F. (2017). Political, Social, and Economic Determinants of Corruption. International Journal of Economics and Finance, Vol. 7, Iss. 4, 2017 pp. 144-149.
[14]
Glynn, P., Kobrin, S., and Naim, M., (1997). The Globilisation of Corruption. Corruption and the Global Economy, pp. 7-27.
[15]
Goel, R. and Nelson, M. (2010). Causes of Corruption: History, Geography, and Government. Journal of Policy Modeling, Vol. 32, Iss. 4 August 2010 pp. 433-447.
[16]
Goldsmith, A. (2006). Correlates of Political Corruption in Emerging Markets. American Journal of Economics and Sociology, Vol. 58, Iss. 4, July 2006.
[17]
Graycar, A. (2015). Corruption: Classification and Analysis. Policy and Society, Vol. 34, 2015 pp. 87-96.
[18]
Huang, C. (2016). Is Corruption Bad for Economic Growth? Evidence from Asia-Pacific Countries. The North American Journal of Economics and Finance, Vol. 35, January 2016 pp. 247-256.
[19]
Lambsdroff, J. and Schulze, G (2015). What Can We Know About Corruption? Jahrbucher Nationalokonomie Statistik, Vol. 235, No. 2, 2015.
[20]
Liu, X. (2016). A Literature Review on the Definition of Corruption and Factors Affecting the Risk of Corruption. Open Journal of Social Sciences, Vol. 4, June 2016 pp. 171-177.
[21]
Monte, A. and Papagni, E. (2007). The Determinants of Corruption in Italy: Regional Panel Data Analysis. European Journal of Political Economy, Vol. 23, Iss. 2, June 2007 pp. 379-396.
[22]
Paldam, M. (2002). The Cross-Country Pattern of Corruption: Economics, Culture, and the Seesaw Dynamics. European journal of Political Economy, Vol. 18, Iss. 2, June 2002 pp. 215-240.
[23]
Park, H. (2003). Determinants of Corruption: A Cross-National Analysis. Multinational Business Review, Vol. 11, No. 2, June 2003 pp. 29-48.
[24]
Rehman, H. and Naveed A. (2007). Determinants of Corruption and its Relation to GDP: (A Panel Study). Journal of Political Studies (2007).
[25]
Schulze, G., Sjahrir, B., and Zakharov, N. (2016). Corruption in Russia. The Journal of Law and Economics, Vol. 59, No. 1, February 2016.
[26]
Seldadyo, H., Haan, J. (2006). The Determinants of Corruption a Literature Survey and New Evidence. https://projects.iq.harvard.edu/files/gov2126/files/seldadyo_determinants_corruption.pdf, 01.05.2017.
[27]
Serra, D. (2006). Empirical Determinants of Corruption: A Sensitivity Analysis. Public Choice, Vol. 126. January 2006 pp. 225-256.
[28]
Shabbir, C. and Anwar, M (2007). Determinants of Corruption in Developing Countries. The Pakistan Development Review, Vol. 46 (Winter 2007) pp. 751-764.
[29]
Swamy, S., Knack, S., Lee, Y., and Azfar, O. (2001). Gender and Corruption. Journal of Development Economics, Vol. 64, Iss. 1, February 2001 pp. 25-55.
[30]
Tanzi, V. (1998). Corruption Around the World: Causes, Consequences, Scope, and Cures. IMF Staff Paper, Vol. 45, Iss. 4, December 1998 pp. 559-594.
[31]
Tavares, J. (2003). Does Foreign Aid Corrupt? Economics Letter, Vol. 79, Iss. 1, April 2003 pp. 99-106.
[32]
Touati, K. (2014). Determinants of Economic Corruption in the Arab Countries: Dangers and Remidies. Journal of Economics Studies and Research, 2014.
[33]
Treisman, D. (2000). The Causes of Corruption: A Cross Nation Study. Journal of Public Economics, Vol. 76, Iss. 3, June 2000 pp. 399-457.
[34]
Zhang, Y., Cao, L. m and Vaughn, M. (2009). Social Support and Corruption: Structural Determinants of Corruption in the World. The Australian and New Zealand Journal of Criminology, Vol. 42, No. 2, 2009 pp. 204-217.
Browse journals by subject