Corruption and Political Stability: Does the Youth Bulge Matter?

40 Pages Posted: 10 Jun 2016

See all articles by Mohammad Reza Farzanegan

Mohammad Reza Farzanegan

University of Marburg - Center for Near and Middle Eastern Studies (CNMS)

Stefan Witthuhn

University of Marburg

Date Written: May 11, 2016

Abstract

This study shows that the relative size of the youth bulge matters for how corruption affects the internal stability of a political system. We argue that corruption cannot buy political stability (e.g., the greasing hypothesis) in countries with a relatively large youth population. Using panel data covering the 2002-2012 period for more than 100 countries, we find a negative interaction effect between the relative size of the youth population and corruption on internal political stability. Corruption is a destabilizing factor for political systems when the share of the youth population in the adult population exceeds a threshold level of approximately 19%. The negative interaction term is robust, controlling for country and year fixed effects, a set of control variables that may affect internal political stability, an alternative operationalization of youth bulge, and a dynamic panel estimation method.

Keywords: demographic transition, youth bulge, political stability, corruption

JEL Classification: D730, D740, E020, H560, J110

Suggested Citation

Farzanegan, Mohammad Reza and Witthuhn, Stefan, Corruption and Political Stability: Does the Youth Bulge Matter? (May 11, 2016). CESifo Working Paper Series No. 5890, Available at SSRN: https://ssrn.com/abstract=2791977

Mohammad Reza Farzanegan (Contact Author)

University of Marburg - Center for Near and Middle Eastern Studies (CNMS) ( email )

Deutschhausstra├če 12
Marburg, 35037
Germany

HOME PAGE: http://www.uni-marburg.de/cnms/wirtschaft

Stefan Witthuhn

University of Marburg ( email )

Universit├Ątsstrasse 24
D-35032 Marburg, D-35032
Germany

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