Common political culture: Evidence on regional corruption contagion |
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| Authors: | Sascha O Becker Peter H Egger Tobias Seidel |
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| Institution: | aUniversity of Stirling, Department of Economics, Stirling, FK9 4 LA, United Kingdom;bIfo Institute, Poschingerstr. 5, 81679 Munich, Germany;cCenter for Economic Studies, LMU Munich, Schackstr. 4, 80539 Munich, Germany;dCESifo, Munich, Germany;eIZA, Bonn, Germany;fWifo, P.O. Box 91, 1103 Vienna, Austria |
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| Abstract: | Although there are indications of common regional corruption characteristics, empirical studies of corruption have assumed that influences on corruption are country-specific. In this paper we report evidence based on a cross-section of 123 economies confirming that, with few specific exceptions, corruption is a regional phenomenon. Institutional change that reduces corruption in one country affects, therefore, neighboring countries. |
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| Keywords: | Corruption Regional effects Institutions Spatial econometrics |
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