Corruption in space: A closer look at the world's subnations |
| |
Institution: | 1. University of Magdeburg, Halle Institute for Economic Research, Germany;2. Halle Institute for Economic Research (IWH), Germany;3. University of Halle-Wittenberg, Halle Institute for Economic Research, Germany;1. Department of Economics and Business Economics, Aarhus University, Denmark;2. PeRCent, CESifo, CEPR, IZA;1. University of Basel, Faculty of Business and Economics, Peter Merian-Weg 6, 4002 Basel, Switzerland;2. Bruegel, Brussels, Belgium;3. University of Chicago, Booth School of Business and University of Basel, Faculty of Business and Economics, USA |
| |
Abstract: | Corruption levels differ not only between but also within countries. In this paper we analyze spatial interdependencies in corruption levels for a large sample of 1232 subnational regions from 81 countries. Based on a spatial autoregressive model, which controls for country-fixed effects and corrects for spatial autocorrelation in the error term, we find that a subnational region's corruption level is positively correlated with neighboring subnational regions' corruption levels. Extending the core model and allowing for heterogeneous spatial effects, we find that most spillovers among subnational regions occur within national borders. Moreover, in particular high income subnational regions and subnational regions with relative low corruption levels tend to spill in space. This is due to their high degree of connectivity in terms of economic, sociocultural and political exchange with other subnational regions. Our estimation results underline the importance to consider not only a subnational region's own characteristics, but also spatial interdependencies when implementing efficient anti-corruption policies at the local level. |
| |
Keywords: | Subnational corruption Spatial econometrics Heterogeneous spatial effects C21 D02 D73 P48 |
本文献已被 ScienceDirect 等数据库收录! |
|