IDEAS home Printed from https://ideas.repec.org/a/spr/eurphb/v56y2007i2p157-166.html
   My bibliography  Save this article

Quantitative relations between corruption and economic factors

Author

Listed:
  • Jia Shao
  • Plamen Ch. Ivanov
  • Boris Podobnik
  • H. Eugene Stanley

Abstract

We report quantitative relations between corruption level and economic factors, such as country wealth and foreign investment per capita, which are characterized by a power law spanning multiple scales of wealth and investment per capita. These relations hold for diverse countries, and also remain stable over different time periods. We also observe a negative correlation between level of corruption and long-term economic growth. We find similar results for two independent indices of corruption, suggesting that the relation between corruption and wealth does not depend on the specific measure of corruption. The functional relations we report have implications when assessing the relative level of corruption for two countries with comparable wealth, and for quantifying the impact of corruption on economic growth and foreign investment. Copyright EDP Sciences/Società Italiana di Fisica/Springer-Verlag 2007

Suggested Citation

  • Jia Shao & Plamen Ch. Ivanov & Boris Podobnik & H. Eugene Stanley, 2007. "Quantitative relations between corruption and economic factors," The European Physical Journal B: Condensed Matter and Complex Systems, Springer;EDP Sciences, vol. 56(2), pages 157-166, March.
    • Handle: RePEc:spr:eurphb:v:56:y:2007:i:2:p:157-166
    DOI: 10.1140/epjb/e2007-00098-2
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1140/epjb/e2007-00098-2
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1140/epjb/e2007-00098-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hokky Situngkir, 2004. "Money-Scape: A Generic Agent-Based Model of Corruption," Computational Economics 0405008, University Library of Munich, Germany.
    2. McCallum, Bennett T., 1990. "Inflation: Theory and evidence," Handbook of Monetary Economics, in: B. M. Friedman & F. H. Hahn (ed.), Handbook of Monetary Economics, edition 1, volume 2, chapter 18, pages 963-1012, Elsevier.
    3. Raymond Fisman & Edward Miguel, 2006. "Cultures of Corruption: Evidence From Diplomatic Parking Tickets," NBER Working Papers 12312, National Bureau of Economic Research, Inc.
    4. James R. Hines, Jr., 1995. "Forbidden Payment: Foreign Bribery and American Business After 1977," NBER Working Papers 5266, National Bureau of Economic Research, Inc.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hu, Lunchao & Tian, Kailan & Wang, Xin & Zhang, Jiang, 2012. "The “S” curve relationship between export diversity and economic size of countries," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(3), pages 731-739.
    2. Roan Alexander Snyman, 2022. "Games of Truth in the Age of Transparency: International Organisations and the Construction of Corruption," Journal of Business Ethics, Springer, vol. 181(1), pages 83-96, November.
    3. Tunali, Çiǧdem Börke & Yilanci, Veli, 2010. "Are per capita incomes of MENA countries converging or diverging?," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 389(21), pages 4855-4862.
    4. Chen, Yanguang, 2012. "The rank-size scaling law and entropy-maximizing principle," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(3), pages 767-778.
    5. Hutzler, S. & Sommer, C. & Richmond, P., 2016. "On the relationship between income, fertility rates and the state of democracy in society," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 452(C), pages 9-18.
    6. Paulus, Michal & Kristoufek, Ladislav, 2015. "Worldwide clustering of the corruption perception," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 428(C), pages 351-358.
    7. José María Díez-Esteban & Jorge Bento Farinha & Conrado Diego García-Gómez, 2019. "How does national culture affect corporate risk-taking?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 9(1), pages 49-68, March.
    8. Osipian, Ararat, 2008. "The World is Flat: Modeling Educators’ Misconduct with Cellular Automata," MPRA Paper 7592, University Library of Munich, Germany.
    9. 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.
    10. Cemil Kuzey & Ali Uyar & Amal Hamrouni & Merve Kilic & Rim Boussaada, 2021. "The link between institutional quality, ethical behaviors of firms, and market regulations on stock market developments," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 998-1021, June.
    11. LABED Lazhar & BOUCENNA Mohammed Ridha & BENZOUAI Mohamed Cherif, 2022. "Analyzing The Impact Of Corruption On Income Levels Disparity Between Countries," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 160-175, August.
    12. Yan Li & Fiona Yao & David Ahlstrom, 2015. "The social dilemma of bribery in emerging economies: A dynamic model of emotion, social value, and institutional uncertainty," Asia Pacific Journal of Management, Springer, vol. 32(2), pages 311-334, June.
    13. Lu, Dan & Floría, L.M., 2023. "Dynamics of corruption on correlated multiplex networks with overlap," Chaos, Solitons & Fractals, Elsevier, vol. 171(C).
    14. Shapir-Tidhar, Michal H. & Malul, Miki & Rosenboim, Mosi, 2023. "Tax structure efficiency: Introducing a new index," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 430-437.
    15. Ararat L. Osipian, 2013. "Corrupt organizations: modeling educators’ misconduct with cellular automata," Computational and Mathematical Organization Theory, Springer, vol. 19(1), pages 1-24, March.
    16. Linda Ponta & Silvano Cincotti, 2018. "Traders’ Networks of Interactions and Structural Properties of Financial Markets: An Agent-Based Approach," Complexity, Hindawi, vol. 2018, pages 1-9, January.
    17. Ahmed, Walid M.A., 2020. "Corruption and equity market performance: International comparative evidence," Pacific-Basin Finance Journal, Elsevier, vol. 60(C).
    18. Chen, Yanguang, 2012. "The mathematical relationship between Zipf’s law and the hierarchical scaling law," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 391(11), pages 3285-3299.
    19. Dean A. Shepherd & Vinit Parida & Joakim Wincent, 2021. "Bribery from a micro, demand-side perspective," Small Business Economics, Springer, vol. 57(4), pages 1661-1680, December.
    20. Salois, Matthew J., 2013. "Regional changes in the distribution of foreign aid: An entropy approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 392(13), pages 2893-2902.
    21. Završnik, Jernej & Perc, Matjaž, 2024. "Bird’s-eye view of Slovenian pediatrics reveals complexity but also consistency," Chaos, Solitons & Fractals, Elsevier, vol. 181(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jia Shao & Plamen Ch. Ivanov & Boris Podobnik & H. Eugene Stanley, 2007. "Quantitative relations between corruption and economic factors," Papers 0705.0161, arXiv.org.
    2. H Peyton Young, 2014. "The Evolution of Social Norms," Economics Series Working Papers 726, University of Oxford, Department of Economics.
    3. Brigitte Granville & Jaume Martorell Cruz & Martha Prevezer, 2015. "Elites, Thickets and Institutions: French Resistance versus German Adaptation to Economic Change, 1945-2015," Working Papers 63, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    4. Kibritçioğlu, Aykut, 2002. "Causes of Inflation in Turkey: A Literature Survey with Special Reference to Theories of Inflation," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 43-76.
    5. Ernesto Dal Bó & Marko Terviö, 2013. "Self-Esteem, Moral Capital, And Wrongdoing," Journal of the European Economic Association, European Economic Association, vol. 11(3), pages 599-663, June.
    6. Couttenier, Mathieu & Toubal, Farid, 2017. "Corruption for sales," Journal of Comparative Economics, Elsevier, vol. 45(1), pages 56-66.
    7. Izquierdo, Alejandro & Micco, Alejandro & Panizza, Ugo & Chong, Alberto E., 2003. "Corporate Governance and Private Capital Flows to Latin America," IDB Publications (Working Papers) 1457, Inter-American Development Bank.
    8. Guido Tabellini, 2007. "The Scope of Cooperation: Norms and Incentives," Levine's Working Paper Archive 321307000000000866, David K. Levine.
    9. Fredriksson, Per G. & List, John A. & Millimet, Daniel L., 2003. "Bureaucratic corruption, environmental policy and inbound US FDI: theory and evidence," Journal of Public Economics, Elsevier, vol. 87(7-8), pages 1407-1430, August.
    10. Brigitte Granville & Jaume Martorell Cruz, 2016. "Squared Segmentation: How the Insider/Outsider divide across Public/Private Employment shapes attitudes towards markets," Working Papers 78, Queen Mary, University of London, School of Business and Management, Centre for Globalisation Research.
    11. Arvind K. Jain, 2011. "Corruption: Theory, Evidence and Policy," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 9(2), pages 3-9, 07.
    12. Yin‐Wong Cheung & Xingwang Qian, 2009. "Empirics Of China'S Outward Direct Investment," Pacific Economic Review, Wiley Blackwell, vol. 14(3), pages 312-341, August.
    13. Jensen, Nathan M. & Li, Quan & Rahman, Aminur, 2007. "Heard melodies are sweet, but those unheard are sweeter : understanding corruption using cross-national firm-level surveys," Policy Research Working Paper Series 4413, The World Bank.
    14. McCallum, Bennett T., 1999. "Issues in the design of monetary policy rules," Handbook of Macroeconomics, in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 23, pages 1483-1530, Elsevier.
    15. Carlos Moreno‐Jaimes, 2022. "Indulgent citizens: Bribery in Mexico's bureaucratic procedures," Public Administration & Development, Blackwell Publishing, vol. 42(3), pages 190-208, August.
    16. Neely, Christopher J. & Rapach, David E., 2011. "International comovements in inflation rates and country characteristics," Journal of International Money and Finance, Elsevier, vol. 30(7), pages 1471-1490.
    17. Turan Subasat & Sotirios Bellos, 2013. "Governance and foreign direct investment in Latin America: A panel gravity model approach," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 50(1), pages 107-131, May.
    18. Nelson, Edward, 2003. "The future of monetary aggregates in monetary policy analysis," Journal of Monetary Economics, Elsevier, vol. 50(5), pages 1029-1059, July.
    19. Kurozumi, Takushi, 2006. "Determinacy and expectational stability of equilibrium in a monetary sticky-price model with Taylor rule," Journal of Monetary Economics, Elsevier, vol. 53(4), pages 827-846, May.
    20. Pande, Rohini, 2008. "Understanding Political Corruption in Low Income Countries," Handbook of Development Economics, in: T. Paul Schultz & John A. Strauss (ed.), Handbook of Development Economics, edition 1, volume 4, chapter 50, pages 3155-3184, Elsevier.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:eurphb:v:56:y:2007:i:2:p:157-166. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.