Media freedom and democracy in the fight against corruption |
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| Institution: | 1. Department of Economics, University of Sussex, Jubilee Building, Brighton BN1 9SL, United Kingdom;2. Department of Economics, University of St. Gallen, Bodanstrasse 8, 9000 St. Gallen, Switzerland;3. CESifo, Munich, Germany;1. SIM University (UniSIM), Singapore;2. Austrian Institute of Economic Research (WIFO), Vienna, Austria;1. Department of Economics, Bar-Ilan University, 52900 Ramat-Gan, Israel;2. Institute for Applied Microeconomics, University of Bonn, Adenauerallee 24-42, 53113 Bonn, Germany;1. School of Economics, Singapore Management University, 90 Stamford Road, 178903, Singapore;2. Division of Economics, School of Humanities and Social Sciences, Nanyang Technological University, 14 Nanyang Drive, 637332, Singapore;1. ADRI-CG, Deakin University, Burwood, Victoria 3125, Australia;2. Department of Economics, Monash University, Caulfield East, Victoria 3145, Australia |
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| Abstract: | Democratization and media freedom have been suggested as useful tools in the fight against political corruption, but so far their interplay in this fight has received scant attention. We present a game theoretic model which allows for varying quality of media freedom and democratic institutions. The model predicts, among others, that democratization and media freedom are complements in the fight against political corruption. We test our theoretical predictions using differences-in-differences estimations and panel data covering 129 countries from 1980 to 2007. We find evidence of causal effects of democratization and media freedom on corruption, and that the two are complements. Our main results hold after controlling for income, country fixed effects, and continent-specific time-varying shocks. |
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