Who Benefit from Corruption? The Private Individual or Public Purse?

Tawiah et a. (2021). Who benefits from corruption? The private individual or the public purse?. International Journal of Finance and Economic 1-15.

31 Pages Posted: 19 Apr 2021 Last revised: 13 Apr 2022

See all articles by Vincent Tawiah

Vincent Tawiah

University of Mysore - Department of Commerce; Griffith University; University of Cape Coast; Dublin City University Business School

Abdulrasheed Zakari

Beijing Institute of Technology

James Xede

Hong Kong Metropolitan University

Date Written: April 16, 2021

Abstract

In this paper, we examine the impact of corruption on wealth distribution between the public purse and private individuals conditioned on the institutional quality of a country. We used panel data on 83 countries from 2000 to 2017. Our results indicate that corruption helps private individuals to accumulate more wealth at the expense of the public purse in countries with low-quality institutions. However, corruption increases the wealth in the public purse in countries with high-quality institutions. Therefore, our results imply that the institutional quality of a country significantly shapes how corruption affects the wealth of private individuals and the public purse. The results are pronounced in developing countries and robust to alternative measurements and endogeneity test.

Keywords: Corruption, Institutional quality, Private individual, Public purse, Wealth accumulation.

JEL Classification: E01, E02, E21

Suggested Citation

Tawiah, Vincent and Tawiah, Vincent and Zakari, Abdulrasheed and Xede, James, Who Benefit from Corruption? The Private Individual or Public Purse? (April 16, 2021). Tawiah et a. (2021). Who benefits from corruption? The private individual or the public purse?. International Journal of Finance and Economic 1-15., Available at SSRN: https://ssrn.com/abstract=3827891

Vincent Tawiah (Contact Author)

University of Mysore - Department of Commerce ( email )

Mysore
India

Griffith University ( email )

PMB 50
Gold Coast Queensland 9726
Australia

University of Cape Coast ( email )

PMB, UCC, GHANA
Cape Coast, Central Region PMB
Ghana

HOME PAGE: http://ucc.edu.gh

Dublin City University Business School ( email )

Dublin 9
Ireland

Abdulrasheed Zakari

Beijing Institute of Technology ( email )

School of Management and Economics
Center for Energy and Environmental Policy Researc
Beijing, 0000
China

James Xede

Hong Kong Metropolitan University ( email )

Lee Shau Kee School of Business and Administration
B & A
Hong Kong
Hong Kong

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