Economic Freedom Versus Political Freedom: Cross-Country Influences on Corruption
13 Pages Posted: 26 Jun 2005
Abstract
Using a well-known index of corruption, this paper examines the determinants of corruption for a large sample of countries. Specifically, the present study brings empirical evidence to bear on the question of whether economic freedom or political freedom serves as a deterrent to corrupt activity. In particular, does greater economic freedom or greater political freedom yield a more 'clean' society? Our results show that greater economic freedom seems to matter more in this regard. Examining different components of economic freedom, we find that not all these components are equally effective in reducing corruption. For instance, monetary policy seems to have a stronger influence on the level of corrupt activity in a country than fiscal policy. Robustness of these findings is checked and policy implications are discussed.
Suggested Citation: Suggested Citation
Do you have a job opening that you would like to promote on SSRN?
Recommended Papers
-
By Andrei Shleifer and Robert W. Vishny
-
By Simeon Djankov, Rafael La Porta, ...
-
By Simeon Djankov, Florencio Lopez De Silanes, ...
-
By Simeon Djankov, Rafael La Porta, ...
-
The Invisible Hand and the Grabbing Hand
By Timothy Frye and Andrei Shleifer
-
By Juan Carlos Botero, Simeon Djankov, ...
-
By Juan Carlos Botero, Simeon Djankov, ...
-
Governance Matters Iii: Governance Indicators for 1996-2002
By Daniel Kaufmann, Aart Kraay, ...