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Political Management And Corruption In Developing Nations

Author

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  • Cassandra E. DiRienzo
  • Douglas B. Redington

Abstract

This study empirically explores the relationship between corruption and the quality of political management in developing nations using a cross-country dataset. Specifically, this analysis jointly considers the two theoretical effects of corruption, ‘grease the wheels’ and ‘sand in the wheels’, argued in the literature to determine if a nonlinear relationship exists between corruption and the quality of political management. Using a cross-country data set of 114 countries, the results of this study suggest that corruption has an overall negative effect on the quality of political management in developing nations; however, political managers can benefit from a minimal level of corruption and that the complete absence of corruption can hinder the effectiveness of political managers. The Concluding Comments section includes a discussion of the policy implications of the findings.

Suggested Citation

  • Cassandra E. DiRienzo & Douglas B. Redington, 2014. "Political Management And Corruption In Developing Nations," Global Journal of Business Research, The Institute for Business and Finance Research, vol. 8(2), pages 1-11.
    • Handle: RePEc:ibf:gjbres:v:8:y:2014:i:2:p:1-11
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    References listed on IDEAS

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    2. M.S. Alam, 1995. "A Theory of Limits on Corruption and some Applications," Kyklos, Wiley Blackwell, vol. 48(3), pages 419-435, August.
    3. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
    4. Ruth Aguilera & Abhijeet Vadera, 2008. "The Dark Side of Authority: Antecedents, Mechanisms, and Outcomes of Organizational Corruption," Journal of Business Ethics, Springer, vol. 77(4), pages 431-449, February.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Political Management; Corruption; Developing Nations; Nonlinear;
    All these keywords.

    JEL classification:

    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • O15 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Economic Development: Human Resources; Human Development; Income Distribution; Migration

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