Individualism and Corruption: A Cross-Country Analysis

Economic Papers: ​A journal of applied economics and policy (2017), 36: 60–74. DOI: 10.1111/1759-3441.12163

Posted: 14 Mar 2017

See all articles by Chandan Kumar Jha

Chandan Kumar Jha

Le Moyne College

Bibhudutta Panda

University of Minnesota - Morris - Division of Social Sciences

Date Written: 2017

Abstract

While the role of cultural norms in determining corruption is well-explored in the empirical literature, the relationship between a specific aspect of culture, that is, individualism versus collectivism, and corruption is rather unexplored. This paper investigates the relationship between individualism/collectivism and corruption in a large cross-section of countries. To establish causality, the paper uses an index of historical prevalence of infectious diseases and a measure of genetic distance between the population in a country from that in the United States to instrument the individualism/collectivism variable. We find that more individualistic countries have lower levels of corruption (perception). This relationship is robust to the inclusion of a rich set of control variables and to the use of alternative measures of corruption.

Keywords: corruption, culture, individualism, collectivism

JEL Classification: D03, D73, Z10, O10

Suggested Citation

Jha, Chandan Kumar and Panda, Bibhudutta, Individualism and Corruption: A Cross-Country Analysis (2017). Economic Papers: ​A journal of applied economics and policy (2017), 36: 60–74. DOI: 10.1111/1759-3441.12163, Available at SSRN: https://ssrn.com/abstract=2931410

Chandan Kumar Jha (Contact Author)

Le Moyne College ( email )

Syracuse, NY 13214
United States

Bibhudutta Panda

University of Minnesota - Morris - Division of Social Sciences ( email )

600 E 4th St
Morris, MN 56267
United States

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