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Causality between income inequality and corruption in OECD countries

Author

Listed:
  • Policardo, Laura
  • Sanchez Carrera, Edgar J.
  • Risso, Wiston Adrian

Abstract

Whether corruption can be conducive or not to income inequality has been the focus of interest in the last decades. To the best of our knowledge, however, none has investigated the possibility that income inequality may foster corruption. In this research note, we argue that corruption may be the response of a (perceived) unfair income inequality. Analyzing 34 OECD countries during the period 1995–2011, some tests suggest that causality between corruption and income inequality is country specific. Even more, we found that corruption increases income inequality, and income inequality affects positively corruption.

Suggested Citation

  • Policardo, Laura & Sanchez Carrera, Edgar J. & Risso, Wiston Adrian, 2019. "Causality between income inequality and corruption in OECD countries," World Development Perspectives, Elsevier, vol. 14(C), pages 1-1.
    • Handle: RePEc:eee:wodepe:v:14:y:2019:i:c:9
    DOI: 10.1016/j.wdp.2019.02.013
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    Citations

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    Cited by:

    1. Cuesta, Lizeth & Ruiz, Yomara, 2021. "Efecto de la globalización sobre la desigualdad. Un estudio global para 104 países usando regresiones cuantílicas [Effect of globalization on inequality. A global study for 104 countries using quan," MPRA Paper 111022, University Library of Munich, Germany.
    2. Kostas Rontos & Maria-Eleni Syrmali & Luca Salvati & Ioannis Vavouras, 2024. "Competitiveness, corruption, and income inequalities: approaching the ‘Janus’ face of development with simultaneous equation modelling," Quality & Quantity: International Journal of Methodology, Springer, vol. 58(1), pages 343-364, February.
    3. Hilary I. Okagbue & Pelumi E. Oguntunde & Sheila A. Bishop & Patience I. Adamu & Elvir M. Akhmetshin & Chukwuemeka O. Iroham, 2021. "Significant Predictors of Henley Passport Index," Journal of International Migration and Integration, Springer, vol. 22(1), pages 21-32, March.
    4. Lucas Dutra de Paulo & Ricardo Carvalho de Andrade Lima & Robson Tigre, 2022. "Corruption and economic growth in Latin America and the Caribbean," Review of Development Economics, Wiley Blackwell, vol. 26(2), pages 756-773, May.
    5. Bestari Dwi Handayani & Heri Yanto & Amin Pujiati & Abdul Rahim Ridzuan & J. S. Keshminder & Mohd Shahidan Shaari, 2022. "The Implication of Energy Consumption, Corruption, and Foreign Investment for Sustainability of Income Distribution in Indonesia," Sustainability, MDPI, vol. 14(23), pages 1-15, November.
    6. Ruijia Wu & Rafael Alvarado & Priscila Méndez & Brayan Tillaguango, 2024. "Impact of Informational and Cultural Globalization, R&D, and Urbanization on Inequality," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 1666-1702, March.

    More about this item

    Keywords

    Corruption perception; Gini index; Granger causality; OECD countries;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D30 - Microeconomics - - Distribution - - - General
    • K42 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Illegal Behavior and the Enforcement of Law
    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • O5 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies

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