Corruption and Anti-Market Beliefs: Evidence from the Gallup World Poll

31 Pages Posted: 25 Aug 2012

See all articles by Dalibor Rohac

Dalibor Rohac

Legatum Institute; King's College London

Date Written: August 24, 2012

Abstract

Does experience of corruption and cronyism have an effect on popular attitudes towards markets and capitalists? Using the data from the Gallup World Poll, we find broad support for the proposition that corruption and cronyism – and therefore also the experience of corrupt, “unpleasant,” business people – leads to an aversion against markets in countries where such practices are abundant. Lower levels of control of corruption, as measured by the Worldwide Governance Indicators, are associated with weaker perceptions of meritocracy and a lower support for the belief that entrepreneurs are good role models for the youth. Furthermore, corruption also significantly reduces trust in potential business partners. Paradoxically, we also document a negative association between WGI’s measure of control of corruption and willingness to start own business. This can be plausibly explained by the fact that corruption represents a barrier to the growth of businesses, and as such reduces the opportunities of individuals to find employment in the private sector.

Keywords: Beliefs about markets, corruption, cronyism

JEL Classification: D02, P52

Suggested Citation

Rohac, Dalibor, Corruption and Anti-Market Beliefs: Evidence from the Gallup World Poll (August 24, 2012). Available at SSRN: https://ssrn.com/abstract=2135565 or http://dx.doi.org/10.2139/ssrn.2135565

Dalibor Rohac (Contact Author)

Legatum Institute ( email )

11 Charles Street
Mayfair, London, London W1J 5DW
United Kingdom

King's College London ( email )

Strand
London, England WC2R 2LS
United Kingdom
07585303666 (Phone)

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
42
Abstract Views
446
PlumX Metrics