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Empirical determinants of corruption: A sensitivity analysis

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  • Danila Serra

Abstract

Many variables have been proposed by past studies as significant determinants of corruption. This paper asks if their estimated impact on corruption is robust to alteration of the information set. A “Global Sensitivity Analysis”, based on the Leamer's Extreme-Bounds Analysis gives a clear answer: five variables are robustly related to corruption. Corruption is lower in richer countries, where democratic institutions have been preserved for a long continuous period, and the population is mainly Protestant. Corruption is instead higher where political instability is a major problem. Finally, a country's colonial heritage appears to be a significant determinant of present corruption. Copyright Springer Science + Business Media, Inc. 2006

Suggested Citation

  • Danila Serra, 2006. "Empirical determinants of corruption: A sensitivity analysis," Public Choice, Springer, vol. 126(1), pages 225-256, January.
    • Handle: RePEc:kap:pubcho:v:126:y:2006:i:1:p:225-256
    DOI: 10.1007/s11127-006-0286-4
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    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • H11 - Public Economics - - Structure and Scope of Government - - - Structure and Scope of Government

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