Corruption Perceptions: The Trap of Democratization, a Panel Data Analysis

Abstract

The Corruption Perception Index (CPI) is the most famous corruption evaluation since its first publication by Transparency International (TI), in 1995. This index is also considered the most robust measure of corruption perceptions. However, since it precisely refers to perceptions, it inevitably faces some limitations. Although Transparency International continuously advocates for a better use of its indexes, policy makers keep using the CPI as a decision making tool.

In a previous article we isolated the role played by the media in corruption perceptions. We previously suggested that young democracies were penalized by Transparency International. Indeed, we showed that media aperture leads to a better coverage of corruption deeds and therefore drives a stronger perception of already existing - but not yet broadcasted - corruption.

Our previous paper was using cross-section data. Pursuing more consistent evidence and robustness improvement, we collected time series to perform a panel data analysis, questioning the stability and precision of our earlier findings.

In this new paper, we investigate the link between democracy and corruption perceptions, in the light of a possible opening bias, we already called “reflective bias”.

Keywords: Corruption, Governance, Corruption perception index, CPI, Transparency International, Corruption measurement, Perception indicators, Press freedom, Freedom house.

JEL Classification: O11, O17,O19