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Dominik Enste / Christina Heldman IW-Report No. 2 25. January 2017 Causes and Consequences of Corruption: An Overview of Empirical Results

Corruption is a main threat in many countries around the world. Therefore, the causes and consequences of corruption are analyzed in various empirical studies. Since the results are quite mixed, we have summarized the findings of the central empirical literature from the last two decades for a comprehensive overview.

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An Overview of Empirical Results
Dominik Enste / Christina Heldman IW-Report No. 2 25. January 2017

Causes and Consequences of Corruption: An Overview of Empirical Results

IW-Report

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Corruption is a main threat in many countries around the world. Therefore, the causes and consequences of corruption are analyzed in various empirical studies. Since the results are quite mixed, we have summarized the findings of the central empirical literature from the last two decades for a comprehensive overview.

Main causes for corruption are according to the studies (1) the size and structure of governments, (2) the democracy and the political system, (3) the quality of institutions, (4) economic freedom/ openness of economy, (5) salaries of civil service, (6) press freedom and judiciary, (7) cultural determinants, (8) percentage of women in the labor force and in parliament (9) colonial heritage and (10) the endowment of natural resources. Corruption has an impact on (1) investment in general, (2) foreign direct investment and capital inflows, (3) foreign trade and aid, (4) official growth, (5) inequality, (6) government expenditure and services, and (7) shadow economy and crime.

Download PDF
An Overview of Empirical Results
Dominik Enste / Christina Heldman IW-Report No. 2 25. January 2017

Dominik Enste / Christina Heldman: Causes and Consequences of Corruption – An Overview of Empirical Results

IW-Report

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Dominik Enste / Julia Wildner / Lucia Nafziger IW-Report No. 1 1. January 2021

Going Green with Behavioral Economics: How to Combine Business and Ethics

This paper calls for an increased discourse between Fridays for Future and representatives of business. Fridays for Future play a key role in educating the public and raising awareness of scientific reports, such as the Intergovernmental Panel on Climate ...

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Dominik Enste / Jennifer Potthoff IW-Report No. 55 28. October 2020

The Business Ethics of the Corona Crisis

This research work is intended to analyze the economic consequences and ethical challenges that are caused by the coronavirus pandemic and to predict whether one can find a balance within the arising conflict of interest between economy, health and ethics. The ...

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