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The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis

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  • Saha, Shrabani
  • Gounder, Rukmani
  • Su, Jen-Je

Abstract

This paper examines the effects of economic freedom, democracy and its interaction term on controlling corruption. Interactive results indicate that economic freedom and democracy significantly combat corruption. Economic freedom reduces corruption in any political environment. Democracy increases corruption when economic liberalization is low.

Suggested Citation

  • Saha, Shrabani & Gounder, Rukmani & Su, Jen-Je, 2009. "The interaction effect of economic freedom and democracy on corruption: A panel cross-country analysis," Economics Letters, Elsevier, vol. 105(2), pages 173-176, November.
    • Handle: RePEc:eee:ecolet:v:105:y:2009:i:2:p:173-176
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