Causes and consequences of corruption: the context of Asia

Corruption is receiving a lot of attention globally and researchers have been discussing issues related to the causes and consequences. This paper investigates the effect of government size on corruption, and further confirm the consistency of the initial model by investigating whether additional in...

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Main Author: Chua, Xiang Xin
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2020
Subjects:
Online Access:https://eprints.nottingham.ac.uk/59752/
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author Chua, Xiang Xin
author_facet Chua, Xiang Xin
author_sort Chua, Xiang Xin
building Nottingham Research Data Repository
collection Online Access
description Corruption is receiving a lot of attention globally and researchers have been discussing issues related to the causes and consequences. This paper investigates the effect of government size on corruption, and further confirm the consistency of the initial model by investigating whether additional independent variables such as democracy, economic freedom and economic growth would produce a better model. Using annual data from 27 countries between 2007 to 2016, empirical results indicate that a larger government size will lead to lower level of corruption. The result is consistent in the enhanced model and surprisingly we have discovered that democracy, one of the widely discussed factor, is not significant to corruption. We conduct another investigation on whether corruption negatively affects economic growth based on same period and data set. Empirical result shows that corruption perception index (higher index indicates lower corruption) is positively significant to economic growth at five percent confidence level for twenty seven countries in Asia, acting as a “sand the wheel” effect on the economy. This study suggests policy maker in Asia region that they may need to review existing policy in order to effectively curb corruption and improve the economy.
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spelling nottingham-597522020-08-04T08:00:59Z https://eprints.nottingham.ac.uk/59752/ Causes and consequences of corruption: the context of Asia Chua, Xiang Xin Corruption is receiving a lot of attention globally and researchers have been discussing issues related to the causes and consequences. This paper investigates the effect of government size on corruption, and further confirm the consistency of the initial model by investigating whether additional independent variables such as democracy, economic freedom and economic growth would produce a better model. Using annual data from 27 countries between 2007 to 2016, empirical results indicate that a larger government size will lead to lower level of corruption. The result is consistent in the enhanced model and surprisingly we have discovered that democracy, one of the widely discussed factor, is not significant to corruption. We conduct another investigation on whether corruption negatively affects economic growth based on same period and data set. Empirical result shows that corruption perception index (higher index indicates lower corruption) is positively significant to economic growth at five percent confidence level for twenty seven countries in Asia, acting as a “sand the wheel” effect on the economy. This study suggests policy maker in Asia region that they may need to review existing policy in order to effectively curb corruption and improve the economy. 2020-07-24 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/59752/1/Dissertation_Chua%20Xiang%20Xin_10308570.pdf Chua, Xiang Xin (2020) Causes and consequences of corruption: the context of Asia. [Dissertation (University of Nottingham only)] corruption democracy economic freedom economic growth Asia country
spellingShingle corruption
democracy
economic freedom
economic growth
Asia country
Chua, Xiang Xin
Causes and consequences of corruption: the context of Asia
title Causes and consequences of corruption: the context of Asia
title_full Causes and consequences of corruption: the context of Asia
title_fullStr Causes and consequences of corruption: the context of Asia
title_full_unstemmed Causes and consequences of corruption: the context of Asia
title_short Causes and consequences of corruption: the context of Asia
title_sort causes and consequences of corruption: the context of asia
topic corruption
democracy
economic freedom
economic growth
Asia country
url https://eprints.nottingham.ac.uk/59752/