Social Media, Internet, and Corruption

42 Pages Posted: 8 Feb 2014 Last revised: 26 Apr 2017

Chandan Kumar Jha

Le Moyne College

Sudipta Sarangi

Virginia Polytechnic Institute & State University

Date Written: October 1, 2016

Abstract

In this paper we study the impact of multi-way means of communication on corruption by exploring the relationship between social media and corruption. Our cross-country analysis of over 150 countries shows that Facebook penetration (a proxy for social media) has a negative and economically sizable impact on corruption. Using a novel dataset on technological adoption, we exploit variations in cross-country technological adoption in the field of communication in 1500 AD to address endogeneity concerns. We then provide suggestive evidence which shows that the effects of social media are not contingent on freedom of the press; social media can impact corruption both in countries where press is free and where it is repressed. Our findings also confirm the negative relationship between internet penetration and corruption. Finally, a falsification test for the relationship between Facebook penetration and corruption is also reported.

Keywords: Corruption, Transparency of Information, Facebook, Internet, Social Media

JEL Classification: D73, D83, O1, H0

Suggested Citation

Jha, Chandan Kumar and Sarangi, Sudipta, Social Media, Internet, and Corruption (October 1, 2016). Available at SSRN: https://ssrn.com/abstract=2391904 or http://dx.doi.org/10.2139/ssrn.2391904

Chandan Kumar Jha (Contact Author)

Le Moyne College ( email )

Syracuse, NY 13214
United States

Sudipta Sarangi

Virginia Polytechnic Institute & State University ( email )

Blacksburg, VA 24061
United States

Paper statistics

Downloads
464
Rank
48,919
Abstract Views
4,114