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Corruption May Worsen In Democratizing Economies: But Don't Let It Erode Our Faith In Democracy, Shaomin Li, Ilan Alon, Jun Wu

Management Faculty Publications

This commentary is based on a recent study we conducted on the relationship between regime type, corruption, and economic development. We build a theory that links corruption and regime type to economic growth and test it on 158 countries, using multiple databases including Polity IV, transparency international, the World Bank, and others. We first distinguish three regime types, autocracy (dictatorship), anocracy (countries in early stage of democratization), and mature democracy. We found that when autocratic countries begin democratize, corruption usually gets worse. As the infant democracies mature, corruption decreases.