Globalization and Corruption: New Evidence

Abstract

The aim of this paper is to test whether the relationship between globalization and corruption is non-linear as suggested by the literature. The study has been conducted on a sample size of 122 countries between 1990 and 2006 divided into four sub-periods. The findings confirm the hypothesis of the non-linearity. These results are consistent with the literature which found that not all developing countries could gain from globalization, unless they participate more intensively in the globalization process and move beyond a critical threshold. Among developing countries, most of Sub-Saharan African countries seem to suffer more seriously from globalization.

Keywords: globalization, corruption, developing countries

JEL Classification: H10, F02, F50