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State history and corruption

Author

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  • Owen, P. Dorian
  • Vu, Trung V.

Abstract

This paper explores the effect of state history, measured from 3500 BCE to 2000 CE, on control of corruption. Using cross-country data, we find that the relationship between the capacity to control corruption and accumulated statehood experience follows a hump-shaped (inverted-U) pattern. This result is robust to using alternative measures of state history or corruption, controlling for other measures of early development and contemporary determinants of corruption, and removing outliers.

Suggested Citation

  • Owen, P. Dorian & Vu, Trung V., 2022. "State history and corruption," Economics Letters, Elsevier, vol. 218(C).
    • Handle: RePEc:eee:ecolet:v:218:y:2022:i:c:s0165176522002798
    DOI: 10.1016/j.econlet.2022.110774
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    References listed on IDEAS

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    1. Eugen Dimant & Guglielmo Tosato, 2018. "Causes And Effects Of Corruption: What Has Past Decade'S Empirical Research Taught Us? A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 32(2), pages 335-356, April.
    2. Filipe R. Campante & Davin Chor & Quoc‐Anh Do, 2009. "Instability And The Incentives For Corruption," Economics and Politics, Wiley Blackwell, vol. 21(1), pages 42-92, March.
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    4. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
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    6. Ang, James B., 2013. "Institutions and the long-run impact of early development," Journal of Development Economics, Elsevier, vol. 105(C), pages 1-18.
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    8. International Monetary Fund, 2016. "Corruption: Costs and Mitigating Strategies," IMF Staff Discussion Notes 2016/005, International Monetary Fund.
    9. Oana Borcan & Ola Olsson & Louis Putterman, 2018. "State history and economic development: evidence from six millennia," Journal of Economic Growth, Springer, vol. 23(1), pages 1-40, March.
    10. International Monetary Fund, 2016. "Corruption; Costs and Mitigating Strategies," IMF Staff Discussion Notes 16/05, International Monetary Fund.
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    12. Bockstette, Valerie & Chanda, Areendam & Putterman, Louis, 2002. "States and Markets: The Advantage of an Early Start," Journal of Economic Growth, Springer, vol. 7(4), pages 347-369, December.
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    Citations

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    Cited by:

    1. Karl Z. Meyer & John M. Luiz & Johannes W. Fedderke, 2024. "Rules of the Game and Credibility of Implementation in the Control of Corruption," Journal of Business Ethics, Springer, vol. 194(1), pages 145-163, September.
    2. Trung V. Vu, 2023. "State history and political instability: The disadvantage of early state development," Kyklos, Wiley Blackwell, vol. 76(3), pages 351-379, August.

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    More about this item

    Keywords

    State history; Corruption; Deep roots;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • N00 - Economic History - - General - - - General
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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