Public Corruption and Organizational Performance: Evidence from Highway Transportation

29 Pages Posted: 16 Oct 2020

See all articles by Cheol Liu

Cheol Liu

KDI School of Public Policy and Management

Jekyung Lee

University of Georgia

Date Written: October 13, 2020

Abstract

Public corruption has significant negative effects on the performance of public agencies in both developing and developed countries. In this paper, we propose a theoretical approach to understanding the potential impact of public corruption on the performance of public organizations. We constructed multiple indexes for capturing the sectoral and overall performance of US state highway transportation agencies based on road quality, the status of bridges, traffic congestion, traffic fatalities, and overall highway performance.

Using state panel data for the period from 2002 to 2008, we found that public corruption had a negative impact on the quality of state roads and bridges and on traffic congestion and was associated with increases in traffic fatalities. Overall, we confirmed that corruption has the potential to diminish significantly the performance of US highway transportation agencies.

Suggested Citation

Liu, Cheol and Lee, Jekyung, Public Corruption and Organizational Performance: Evidence from Highway Transportation (October 13, 2020). Available at SSRN: https://ssrn.com/abstract=3710429 or http://dx.doi.org/10.2139/ssrn.3710429

Cheol Liu (Contact Author)

KDI School of Public Policy and Management ( email )

263 Namsejong-ro
Sejong-si 30149
Korea, Republic of (South Korea)

Jekyung Lee

University of Georgia

Athens, GA 30602-6254
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
23
Abstract Views
119
PlumX Metrics