The Nonlinear Impact of Globalization on Corruption

The International Journal of Business and Finance Research, Vol. 3, No. 2, pp. 33-46, 2009

14 Pages Posted: 5 Jul 2010  

Jayoti Das

Elon University - Martha and Spencer Love School of Business

Cassandra DiRienzo

Elon University

Date Written: 2009

Abstract

Some researchers have argued that globalization has increased the opportunity for corrupt practices, while others state that globalization has lead to a decrease in corruption as countries wishing to join the global economy must comply with international anti-corruption rules and regulations. This study empirically explores this paradox using the Corruption Perceptions Index (CPI) and the Konjunkturforschungsstelle (KOF) globalization Index. The results suggest that a nonlinear relationship exists between globalization and corruption. Specifically, the results of this study suggest that the effect of globalization on corruption is dependent on the level of globalization with the highest corruption levels realized at moderate or transitioning levels of globalization.

Keywords: globalization, corruption, KOF globalization index

JEL Classification: F0, D73

Suggested Citation

Das, Jayoti and DiRienzo, Cassandra, The Nonlinear Impact of Globalization on Corruption (2009). The International Journal of Business and Finance Research, Vol. 3, No. 2, pp. 33-46, 2009. Available at SSRN: https://ssrn.com/abstract=1634083

Jayoti Das (Contact Author)

Elon University - Martha and Spencer Love School of Business ( email )

Department of Economics
Campus Box 2075
Elon, NC 27244
United States
336-278-5941 (Phone)
336-278-5952 (Fax)

Cassandra DiRienzo

Elon University ( email )

Elon, NC 27244
United States

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