Financial Reforms and Corruption
12 Pages Posted: 19 Jun 2015
Date Written: June 16, 2015
In this paper, I assess the impact of financial reforms on corruption using a panel of 85 countries for 1984-2005. I find that several, but not all, of the policies targeted towards financial liberalization reduce corruption. Specifically, the abolition of entry barriers, credit controls, and excessive reserve requirements along with improvements in the security markets and banking supervision are associated with lower corruption.
Keywords: Corruption, Banks, Financial Reforms, Liberalization
JEL Classification: D73, G28, O16
Suggested Citation: Suggested Citation