IDEAS home Printed from https://ideas.repec.org/p/adv/wpaper/201306.html
   My bibliography  Save this paper

Impact of natural disaster on public sector corruption

Author

Listed:
  • Eiji Yamamura

    (Seinan Gakuin University)

Abstract

This paper uses inter-country panel data obtained during the period 1990–2010 to examine how the occurrence of natural disasters has affected corruption within the public sector. There are a number of new findings from this study. (1) Disaster with the large amount of damage increase corruption not only for developing countries but also for developed countries. (2) The effect of disasters is greater in developed countries than in developing countries. (3) In the developed countries, frequency of occurrence of disaster plays important role on increasing corruption. This suggests that foreseeable disasters increase corruption. In developed countries, people have an incentive to live within disaster-prone areas to seek compensation.

Suggested Citation

  • Eiji Yamamura, 2013. "Impact of natural disaster on public sector corruption," Development Research Working Paper Series 06/2013, Institute for Advanced Development Studies.
    • Handle: RePEc:adv:wpaper:201306
    as

    Download full text from publisher

    File URL: http://www.inesad.edu.bo/pdf/wp2013/wp06_2013.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. La Porta, Rafael & Lopez-de-Silanes, Florencio & Shleifer, Andrei & Vishny, Robert, 1999. "The Quality of Government," The Journal of Law, Economics, and Organization, Oxford University Press, vol. 15(1), pages 222-279, April.
    2. Rafael Di Tella & Alberto Ades, 1999. "Rents, Competition, and Corruption," American Economic Review, American Economic Association, vol. 89(4), pages 982-993, September.
    3. Noel Johnson & Courtney LaFountain & Steven Yamarik, 2011. "Corruption is bad for growth (even in the United States)," Public Choice, Springer, vol. 147(3), pages 377-393, June.
    4. Matthew E. Kahn, 2005. "The Death Toll from Natural Disasters: The Role of Income, Geography, and Institutions," The Review of Economics and Statistics, MIT Press, vol. 87(2), pages 271-284, May.
    5. Torvik, Ragnar, 2002. "Natural resources, rent seeking and welfare," Journal of Development Economics, Elsevier, vol. 67(2), pages 455-470, April.
    6. Ewing, Bradley T. & Payne, James E. & Caporin, Massimilano, 2022. "The Asymmetric Impact of Oil Prices and Production on Drilling Rig Trajectory: A correction," Resources Policy, Elsevier, vol. 79(C).
    7. Fernanda Brollo & Tommaso Nannicini & Roberto Perotti & Guido Tabellini, 2013. "The Political Resource Curse," American Economic Review, American Economic Association, vol. 103(5), pages 1759-1796, August.
    8. Hideki Toya & Mark Skidmore, 2014. "Do Natural Disasters Enhance Societal Trust?," Kyklos, Wiley Blackwell, vol. 67(2), pages 255-279, May.
    9. Axel Dreher & Friedrich Schneider, 2010. "Corruption and the shadow economy: an empirical analysis," Public Choice, Springer, vol. 144(1), pages 215-238, July.
    10. Monica Escaleras & Shu Lin & Charles Register, 2010. "Freedom of information acts and public sector corruption," Public Choice, Springer, vol. 145(3), pages 435-460, December.
    11. Monica P. Escaleras & Charles A. Register, 2008. "Mitigating Natural Disasters through Collective Action: The Effectiveness of Tsunami Early Warnings," Southern Economic Journal, John Wiley & Sons, vol. 74(4), pages 1017-1034, April.
    12. Robinson, James A. & Torvik, Ragnar & Verdier, Thierry, 2006. "Political foundations of the resource curse," Journal of Development Economics, Elsevier, vol. 79(2), pages 447-468, April.
    13. Nejat Anbarci & Monica Escaleras & Charles Register, 2006. "Traffic Fatalities and Public Sector Corruption," Kyklos, Wiley Blackwell, vol. 59(3), pages 327-344, August.
    14. Simeon Djankov & Jose Montalvo & Marta Reynal-Querol, 2008. "The curse of aid," Journal of Economic Growth, Springer, vol. 13(3), pages 169-194, September.
    15. Luechinger, Simon & Raschky, Paul A., 2009. "Valuing flood disasters using the life satisfaction approach," Journal of Public Economics, Elsevier, vol. 93(3-4), pages 620-633, April.
    16. Mushfiq Swaleheen, 2011. "Economic growth with endogenous corruption: an empirical study," Public Choice, Springer, vol. 146(1), pages 23-41, January.
    17. Mr. Vito Tanzi & Mr. Hamid R Davoodi, 1997. "Corruption, Public Investment, and Growth," IMF Working Papers 1997/139, International Monetary Fund.
    18. Russell Sobel & Peter Leeson, 2006. "Government's response to Hurricane Katrina: A public choice analysis," Public Choice, Springer, vol. 127(1), pages 55-73, April.
    19. Toya, Hideki & Skidmore, Mark, 2007. "Economic development and the impacts of natural disasters," Economics Letters, Elsevier, vol. 94(1), pages 20-25, January.
    20. William Easterly & Ross Levine, 1997. "Africa's Growth Tragedy: Policies and Ethnic Divisions," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 112(4), pages 1203-1250.
    21. Lui, Francis T, 1985. "An Equilibrium Queuing Model of Bribery," Journal of Political Economy, University of Chicago Press, vol. 93(4), pages 760-781, August.
    22. Mark Skidmore & Hideki Toya, 2002. "Do Natural Disasters Promote Long-Run Growth?," Economic Inquiry, Western Economic Association International, vol. 40(4), pages 664-687, October.
    23. William Shughart, 2006. "Katrinanomics: The politics and economics of disaster relief," Public Choice, Springer, vol. 127(1), pages 31-53, April.
    24. Treisman, Daniel, 2000. "The causes of corruption: a cross-national study," Journal of Public Economics, Elsevier, vol. 76(3), pages 399-457, June.
    25. Danila Serra, 2006. "Empirical determinants of corruption: A sensitivity analysis," Public Choice, Springer, vol. 126(1), pages 225-256, January.
    26. Anbarci, Nejat & Escaleras, Monica & Register, Charles A., 2005. "Earthquake fatalities: the interaction of nature and political economy," Journal of Public Economics, Elsevier, vol. 89(9-10), pages 1907-1933, September.
    27. Arvind K. Jain, 2001. "Corruption: A Review," Journal of Economic Surveys, Wiley Blackwell, vol. 15(1), pages 71-121, February.
    28. Jakob Svensson, 2000. "Foreign aid and rent-seeking," Springer Books, in: Roger D. Congleton & Kai A. Konrad & Arye L. Hillman (ed.), 40 Years of Research on Rent Seeking 2, pages 165-189, Springer.
    29. Eiji Yamamura, 2013. "Public sector corruption and the probability of technological disasters," Economics of Governance, Springer, vol. 14(3), pages 233-255, August.
    30. Lorenzo Pellegrini & Reyer Gerlagh, 2008. "Causes of corruption: a survey of cross-country analyses and extended results," Economics of Governance, Springer, vol. 9(3), pages 245-263, July.
    31. Peter T. Leeson & Russell S. Sobel, 2008. "Weathering Corruption," Journal of Law and Economics, University of Chicago Press, vol. 51(4), pages 667-681, November.
    32. Thomas A. Garrett & Russell S. Sobel, 2003. "The Political Economy of FEMA Disaster Payments," Economic Inquiry, Western Economic Association International, vol. 41(3), pages 496-509, July.
    33. Martin Paldam, 2001. "Corruption and Religion Adding to the Economic Model," Kyklos, Wiley Blackwell, vol. 54(2‐3), pages 383-413, May.
    34. Kurosaki, Takashi, 2013. "Vulnerability of Household Consumption to Floods and Droughts in Developing Countries: Evidence from Pakistan," CEI Working Paper Series 2012-10, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
    35. Monica Escaleras & Nejat Anbarci & Charles Register, 2007. "Public sector corruption and major earthquakes: A potentially deadly interaction," Public Choice, Springer, vol. 132(1), pages 209-230, July.
    36. Shiue, Carol H., 2004. "Local Granaries and Central Government Disaster Relief: Moral Hazard and Intergovernmental Finance in Eighteenth- and Nineteenth-Century China," The Journal of Economic History, Cambridge University Press, vol. 64(1), pages 100-124, March.
    37. Baland, Jean-Marie & Francois, Patrick, 2000. "Rent-seeking and resource booms," Journal of Development Economics, Elsevier, vol. 61(2), pages 527-542, April.
    38. Paolo Mauro, 1995. "Corruption and Growth," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(3), pages 681-712.
    39. Kevin M. Simmons & Jamie Brown Kruse & Douglas A. Smith, 2002. "Valuing Mitigation: Real Estate Market Response to Hurricane Loss Reduction Measures," Southern Economic Journal, John Wiley & Sons, vol. 68(3), pages 660-671, January.
    40. Jesús Crespo Cuaresma & Jaroslava Hlouskova & Michael Obersteiner, 2008. "Natural Disasters As Creative Destruction? Evidence From Developing Countries," Economic Inquiry, Western Economic Association International, vol. 46(2), pages 214-226, April.
    41. Kellenberg, Derek K. & Mobarak, Ahmed Mushfiq, 2008. "Does rising income increase or decrease damage risk from natural disasters?," Journal of Urban Economics, Elsevier, vol. 63(3), pages 788-802, May.
    42. Gokcekus, Omer, 2008. "Is it protestant tradition or current protestant population that affects corruption?," Economics Letters, Elsevier, vol. 99(1), pages 59-62, April.
    43. Peter Boettke & Emily Chamlee-Wright & Peter Gordon & Sanford Ikeda & Peter T. Leeson & Russell Sobel, 2007. "The Political, Economic, and Social Aspects of Katrina," Southern Economic Journal, John Wiley & Sons, vol. 74(2), pages 363-376, October.
    44. Thomas Eisensee & David Strömberg, 2007. "News Droughts, News Floods, and U. S. Disaster Relief," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 122(2), pages 693-728.
    45. Glaeser, Edward L. & Saks, Raven E., 2006. "Corruption in America," Journal of Public Economics, Elsevier, vol. 90(6-7), pages 1053-1072, August.
    46. Keefer, Philip & Neumayer, Eric & Plümper, Thomas, 2011. "Earthquake Propensity and the Politics of Mortality Prevention," World Development, Elsevier, vol. 39(9), pages 1530-1541, September.
    47. J.-P. Boissin & A. Fayolle & Karim Messeghem, 2012. "Editorial," Post-Print halshs-00783612, HAL.
    48. World Bank, 2010. "World Development Indicators 2010," World Bank Publications - Books, The World Bank Group, number 4373.
    Full references (including those not matched with items on IDEAS)

    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. Eiji Yamamura, 2013. "Public sector corruption and the probability of technological disasters," Economics of Governance, Springer, vol. 14(3), pages 233-255, August.
    2. Eiji Yamamura, 2012. "Death tolls from natural disasters: Influence of interactions among fiscal decentralization, institutions and economic development," EERI Research Paper Series EERI_RP_2012_08, Economics and Econometrics Research Institute (EERI), Brussels.
    3. 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.
    4. Yamamura, Eiji, 2012. "Death tolls from natural disasters: Influence of interactions between fiscal decentralization, institution, and economic development," MPRA Paper 36987, University Library of Munich, Germany.
    5. Yamamura, Eiji, 2011. "Effect of free media on views regarding the safety of nuclear energy after the 2011 disasters in Japan: evidence using cross-country data," MPRA Paper 32011, University Library of Munich, Germany.
    6. Yamamura, Eiji, 2011. "How does corruption influence perceptions of the risk of nuclear accidents?: cross-country analysis after the 2011 Fukushima disaster in Japan," MPRA Paper 31708, University Library of Munich, Germany.
    7. Monica Escaleras & Charles Register, 2012. "Fiscal decentralization and natural hazard risks," Public Choice, Springer, vol. 151(1), pages 165-183, April.
    8. repec:pdn:wpaper:70 is not listed on IDEAS
    9. Yamamura, Eiji, 2011. "The changing effect of legal origin on death tolls in natural disasters from 1960 to 2008," MPRA Paper 33112, University Library of Munich, Germany.
    10. repec:pdn:wpaper:79 is not listed on IDEAS
    11. Eiji Yamamura, 2013. "Institution and decomposition of natural disaster impact on growth," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 40(6), pages 720-738, October.
    12. Eiji Yamamura, 2010. "Effects of Interactions among Social Capital, Income and Learning from Experiences of Natural Disasters: A Case Study from Japan," Regional Studies, Taylor & Francis Journals, vol. 44(8), pages 1019-1032.
    13. Monica Escaleras & Nejat Anbarci & Charles Register, 2006. "Public Sector Corruption and Natural Disasters: A Potentially Deadly Interaction," Working Papers 06005, Department of Economics, College of Business, Florida Atlantic University, revised Aug 2006.
    14. Monica Escaleras & Charles Register, 2016. "The high cost of low quality infrastructure when natural disasters strike," Journal of Developing Areas, Tennessee State University, College of Business, vol. 50(1), pages 103-122, January-M.
    15. James, Alexander & Rivera, Nathaly M., 2022. "Oil, politics, and “Corrupt Bastards”," Journal of Environmental Economics and Management, Elsevier, vol. 111(C).
    16. Chun-Ping Chang & Aziz N. Berdiev, 2015. "Do natural disasters increase the likelihood that a government is replaced?," Applied Economics, Taylor & Francis Journals, vol. 47(17), pages 1788-1808, April.
    17. Yamamura, Eiji, 2013. "Impact of natural disasters on income inequality: Analysis using panel data during the period 1965 to 2004," MPRA Paper 45623, University Library of Munich, Germany.
    18. Matthias Busse & Steffen Gröning, 2013. "The resource curse revisited: governance and natural resources," Public Choice, Springer, vol. 154(1), pages 1-20, January.
    19. repec:hhs:bofitp:2009_005 is not listed on IDEAS
    20. Daniela Wenzel, 2021. "Droughts and corruption," Public Choice, Springer, vol. 189(1), pages 3-29, October.
    21. Goel, Rajeev K. & Korhonen, Iikka, 2011. "Exports and cross-national corruption: A disaggregated examination," Economic Systems, Elsevier, vol. 35(1), pages 109-124, March.
    22. Meri Davlasheridze & Qing Miao, 2021. "Does post-disaster aid promote community resilience? Evidence from federal disaster programs," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 109(1), pages 63-88, October.

    More about this item

    Keywords

    Corruption; Institution; Disasters; Risk;
    All these keywords.

    JEL classification:

    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

    Statistics

    Access and download statistics

    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:adv:wpaper:201306. 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: Lykke Andersen (email available below). General contact details of provider: https://edirc.repec.org/data/inesabo.html .

    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.