Social and Behavioral Sciences Commons^™

The Economic Costs Of Political Instability: Evidence From Pakistan, Shahid Hussain, Falik Shear

Business Review

This study analyses the impact of Political Instability (PI) on economic growth. PI is referred as the frequent regime or government changes in a country. PI affects economic growth due to inconsistent and uncertain government policies regarding investment and trade, tax system, government spending and fiscal balance, debt structure, monetary policy, exchange rates and inflation. PI coupled with these factors affects internal and external investments and ultimately future economic growth rates. Employing data from Pakistan for the period of 1984-2018, a country with a long history of various episodes of political instability under various democratic and non-democratic regimes, this study …

Materials For Embezzlement: How Municipal Corruption Exploited Social And Economic Conditions In Detroit, Mi, Jimmy Showers

Rushton Journal of Undergraduate Humanities Research

This paper examines how social and economic conditions in Detroit, MI, during the second half of the twentieth century were exploited in a specific instance of municipal corruption involving the city’s Chief of Police, William L. Hart. Drawing on primary source documents, this paper argues that Chief Hart corruptly exploited the city’s social and economic conditions and evaded legal intervention over a prolonged period thereby increasing the magnitude of the corruption and exacerbating negative effects on the city’s most vulnerable residents. Media coverage surrounding Hart’s conviction depicts ramifications difficult to measure highlighting a critical need for research into municipal corruption.

Corruption Perceptions During The Pandemic, Linh Phuong Thao Nguyen, Guangjun Qu

Annual Student Research Poster Session

This study delves into the response of corruption perception indices to the COVID-19 pandemic. We investigate whether a global shift in corruption indices occurred post-pandemic compared to pre-pandemic levels. Additionally, we assess changes in standard errors of these indices before and after the pandemic to gauge shifts in consensus among people regarding corruption levels of a country. Given the WGI-CC's lack of year-to-year comparability across countries, we recalculated WGI-CC standard errors using methods akin to TI-CPI score calculations. Subsequently, we employ regression analysis, incorporating independent variables such as population, GDP, education, and political regime to explore whether changes in standard …

Pengaruh Operasi Tangkap Tangan (Ott) Terhadap Pelaporan Dugaan Tindak Pidana Korupsi Oleh Masyarakat (Studi Kasus Kpk), Wardhana Ardy Syahputra, Muhammad Halley Yudhistira

Jurnal Kebijakan Ekonomi

The Hand Arrest Operation (OTT) is an activity by the KPK in the field of cracking down on corruption that is well-known among the Indonesian people. The activity was also marked by a press conference which outlines the profile of the suspect and the chronology of the arrests. In carrying out its duties, the KPK cannot work alone. The active participation of the community is certainly very helpful for the KPK in carrying out its duties more effectively and efficiently, one form of which is by reporting suspected corruption crimes. The study was conducted to see how the OTT activities …

Political Regimes And Firms' Decisions To Pay Bribes: Theory And Evidence From Firm-Level Surveys, Shuichiro Nishioka, Sumi Sharma, Tuan Le

Economics Faculty Working Papers Series

This paper makes the most of the observed actions of bribe takers and givers from the World Bank Enterprise Surveys and studies how a taker’s action influences a giver's decision to pay bribes. To motivate our empirical study, we consider Kaufmann and Wei's (1999) Stackelberg game between a tax authority and a firm that undergoes tax inspection. The model predicts that, when the authority can use its action as a credible threat for the firm's profitability, the authority disturbs the firm by inspecting more, and the firm is more likely to pay bribes. Consistent with the theoretical prediction, we find …

Behavioral Economics And Monetary Wisdom: A Cross-Level Analysis Of Monetary Aspiration, Pay (Dis)Satisfaction, Risk Perception, And Corruption In 32 Nations, Thomas Li-Ping Tang, Zhen Li, Mehmet Ferhat Özbek, Vivien K. G. Lim, Thompson S. H. Teo, Mahfooz A. Ansari, Toto Sutarso, Ilya Garber, Randy Ki-Kwan Chiu, Brigitte Charles-Pauvers, Caroline Urbain, Roberto Luna-Arocas, Jingqiu Chen, Ningyu Tang, Theresa Li-Na Tang, Fernando Arias-Galicia, Consuelo Garcia De La Torre, Peter Vlerick, Adebowale Akande, Abdulqawi Salim Al-Zubaidi, Ali Mahdi Kazem, Mark G. Borg, Bor-Shiuan Cheng, Linzhi Du, Abdul Hamid Safwat Ibrahim, Kilsun Kim, Eva Malovics, Richard T. Mpoyi, Obiajulu Anthony Ugochukwu Nnedum, Elisaveta Gjorgji Sardžoska, Michael W. Allen, Rosário Correia, Chin-Kang Jen, Alice S. Moreira, Johnston E. Osagie, Aahad M. Osman-Gani, Ruja Pholsward, Marko Polic, Petar Skobic, Allen F. Stembridge, Luigina Canova, Anna Maria Manganelli, Adrian H. Pitariu, Francisco José Costa Pereira

Faculty Publications

Corruption involves greed, money, and risky decision-making. We explore the love of money, pay satisfaction, probability of risk, and dishonesty across cultures. Avaricious monetary aspiration breeds unethicality. Prospect theory frames decisions in the gains-losses domain and high-low probability. Pay dissatisfaction (in the losses domain) incites dishonesty in the name of justice at the individual level. The Corruption Perceptions Index, CPI, signals a high-low probability of getting caught for dishonesty at the country level. We theorize that decision-makers adopt avaricious love-of-money aspiration as a lens and frame dishonesty in the gains-losses domain (pay satisfaction-dissatisfaction, Level 1) and high-low probability (CPI, Level …

The Effect Of Corruption Control On Efficiency Spillovers, Levent Kutlu, Xi Mao

Economics and Finance Faculty Publications and Presentations

We examine the effect of corruption control on efficiency and its implications for efficiency spillovers by a stochastic frontier model. Our dataset covers 102 countries from 1996 to 2014. We find a positive relationship between corruption control and efficiency. If neighboring countries have difficulty in handling corruption, the country would be negatively affected by its neighbors' corruption through efficiency spillovers. We then compare the efficiency differences across countries for three time periods: 1996–2002, 2002–2008, and 2008–2014. On average, technical efficiencies slightly increased in the second period compared to the first period. In the third period, the efficiencies declined, particularly in …

From Economic Miracle To Developmental Basket Case: The Political Economy Of Puerto Rico’S Operation Bootstrap, Kevyn J. Piña

Senior Projects Spring 2023

This study investigates why Operation Bootstrap, which once brought industrialization to Puerto Rico and was deemed successful, did not become a sustainable social and economic strategy. The study delves into how Puerto Rico's colonial position affected this shift from success to failure. Although Operation Bootstrap initially prospered due to American funding and technological advancements, Puerto Rico's colonial status ultimately impeded progress. A review of Puerto Rico's history with the United States, including issues of debt and economic development, reveals that the island's colonial past has made it challenging to address concerns related to economic advancement. This essay explores the relationship …

The Implication Of Corruption On Sustainable Development In Africa: (Using Nigeria As A Case Study), Ezeifekwuaba Tochukwu Benedict

Young African Leaders Journal of Development

The scenario of the rise of corruption in Africa particularly in Nigeria is so much a problem. It cuts across the various Private Sectors including different tiers of government. This research paper applied collected secondary data from library materials, government publications, journals, the internet and daily newspapers. The kernel of the research paper is on the facts that corrupt practices among the class of political leadership have led to the undermining of the stability and growth of the country's economy. Also, it is discovered that corruption maximizes the poverty level that triggers criminal exercises in the Nation. The paper suggests …

Effect Of Health Aid On Life Expectancy In Sub-Saharan Africa, Sakiru Oladele Akinbode Dr., Isiaq O. Oseni

Journal for the Advancement of Developing Economies

No abstract provided.

Jobs For Justice(S): Corruption In The Supreme Court Of India, Madhav S. Aney, Shubhankar Dam, Giovanni Ko

Research Collection School Of Economics

We investigate whether judicial decisions are affected by career concerns of judges by analyzing two questions: Do judges respond to incentives to pander by ruling in favor of the government in the hope of receiving jobs after retiring from the Supreme Court? Does the government reward judges who rule in its favor with prestigious jobs? We construct a data set of Supreme Court of India cases involving the government for 1999–2014. We find that incentives to pander have a causal effect on judicial decision-making, and they are jointly determined by the importance of the case and whether the judge retires …

Vision Redux: Power And Policy In Saudi Arabia, Ross Douglas Kimm

Theses and Dissertations

The size and scope of the Vision 2030 modernization plan and the associated Saudi Aramco initial public offering are watershed events in the history of the modern Kingdom of Saudi Arabia. However, they are not outside the history of the country’s development. This thesis, tracing the roots of this latest development plan back to the founding of the current Saudi state, found that Vision 2030 shares many characteristics with previous efforts. Further, it also found precedence for powerful princes rising to power at times of tectonic change. Finally, while historical context is key to understanding this moment in the Kingdom, …

Interrogating Factors Encumbering E-Government Projects In Zimbabwe, Bismark Mutizwa

Young African Leaders Journal of Development

a journey of public sector transformation through the adoption and implementation of e-government projects. E-government projects are viewed as vehicles of organisational capacity embedded with transparent, accountability, efficiency and effectiveness. In a bid to bring about transmogrification in the public sector, the Zimbabwean government has implemented a number of e-government projects. To this end, this research paper seeks to examine the factors that are hindering the success of these projects and offer remedial actions that can be adopted to guarantee project success.

The Effect Of Remittances On Ethnic Tension, Suyog Shrestha

Senior Projects Spring 2021

With the massive increase in global remittances in the recent decades, migration study has gained a lot of attention from scholars in social sciences. In particular, the effect of remittances on various socio-economic variables have been studied. Furthering this literature, we study the effects of remittances on ethnic tension. Using the Ordinary Least Squares with Panel-Corrected Standard Errors, we find that i) remittances has less impact on ethnic tension in countries with lower variance of ethnic tension than those with higher variance ii) remittances increases ethnic tension in countries that already have higher ethnic tension than the global mean, whereas …

The Effect Of The Second-Stage Anti-Corruption Campaign On Provincial Development In China, 2015-2017, Zhenyao Yuan

Master's Theses

China had experienced long-term economic growth since the reform in 1978. With the communism system shifts in the socialist market economy, the country's legal institution and administration are facing corruption's challenge. President Xi Jinping takes action against deep corruption in China after coming to power in 2013. To observe the impact of the second stage of the anti-corruption campaign on provincial economic development since the Fifth Plenary Session of the 18th Central Committee of the Communist Party of China in 2015 to the 19th National Congress of the Communist Party of China in 2017, this project downloads and extracts public …

Profit Shifting And Corruption, Katarzyna Anna Bilicka, André Seidel

Economics and Finance Faculty Publications

This paper introduces heterogeneous profit shifting costs induced by corrupt tax officials to the analysis of profit shifting of multinationals. Using a theoretically derived corruption weighted tax differential, we show that corruption increases profit shifting of European firms. We use our estimates to calculate the implied tax revenue elasticities for European countries and find that countries with otherwise similar tax rates face lower tax revenue elasticities when they are more corrupt. This means that corruption negatively affects the revenue gains that countries could have from increasing their tax rates.

The Effect Of Police Oversight On Crime And Allegations Of Misconduct: Evidence From Chicago, Bocar A. Ba, Roman G. Rivera

All Faculty Scholarship

Does policing the police increase crime? We avoid simultaneity effects of increased public oversight during a major scandal by identifying events in Chicago that only impacted officers’ self-imposed monitoring. We estimate crime’s response to self- and public-monitoring using regression discontinuity and generalized synthetic control methods. Self-monitoring, triggered by police union memos, significantly reduced serious complaints without impacting crime or effort. However, after a scandal, both civilian complaints and crime rates rise, suggesting that higher crime rates following heightened oversight results from de-policing and civilian behavior simultaneously changing. Our research suggests that proactive internal accountability improves police-community relations without increasing crime.

The Effect Of Perceived Corruption On Voter Turnout In Post-Communist Countries In The European Union: Evidence From The Life In Transition Survey Iii, Ivana Pancurakova

Theses and Dissertations

This paper measures the effect of perceived corruption on voting in post-communist countries in the EU using probit models, Dong and Lewbel’s special estimator, and two stage least squares models. Corruption has a significant and negative effect on voter turnout even when controlling for the endogeneity in the corruption variable.

Political Connections And The Value Of Cash Holdings, Yuanto Kusnadi

Research Collection School Of Accountancy

This study examines how political connections influence the value of cash holdings in an international setting. The main finding reveals that political connections are not associated with the value of cash holdings in the overall sample. However, further analysis demonstrates that political connections are negatively associated with the value of cash holdings for firms inemerging markets and in countries with high levels of corruption. Moreover, the negative valuation of cash holdings is driven by firms that are connected through large shareholders. Overall, the findings provide new insights into the value relevance of cash holdings, especially for politically connected firms.

Kinship, Fractionalization And Corruption, Mahsa Akbari, Duman Bahrami-Rad, Erik O. Kimbrough

Economics Faculty Articles and Research

We examine the roots of variation in corruption across societies, and we argue that marriage practices and family structure are an important, overlooked determinant of corruption. By shaping patterns of relatedness and interaction, marriage practices influence the relative returns to norms of nepotism/favoritism versus norms of impartial cooperation. In-marriage (e.g. consanguineous marriage) generates fractionalization because it yields relatively closed groups of related individuals and thereby encourages favoritism and corruption. Out-marriage creates a relatively open society with increased interaction between non-relatives and strangers, thereby encouraging impartiality. We report a robust association between in-marriage practices and corruption both across countries and within …

East Chicago Politics: A Cornucopia Of Corruption, Tina Ebenger, Tracey Mccabe

Midwest Social Sciences Journal

Despite the comical title, there is a lot of corruption in East Chicago (IN) politics. One mayoral election had to have a “do-over” because of fraudulent absentee ballots, and a former mayor is doing time in jail for using public monies to remodel his home. This cornucopia of corruption extended to the indictment of six public officials (the so-called Sidewalk Six) in East Chicago for misusing public funds for political gain, specifically vote-buying, in the 1999 mayoral reelection of Robert Pastrick. These officials, ranging from a parks superintendent to a city engineer to several city council members, bought votes by …

The Efficient Corruption Hypothesis And The Dynamics Between Economic Freedom, Corruption, And National Income, Joshua Hall, John Levendis, Alexandre R. Scarcioffolo

Economics Faculty Working Papers Series

Income, economic freedom, and corruption interact in complex ways as all three variables are arguably endogenous. We explicitly model this endogeneity using a panel VAR framework. The pVAR models we estimate are able to explicitly model this endogeneity better than the single-equation panel data models previously used in the literature. Using data on corruption and income from the World Bank and economic freedom from the Fraser Institute, we provide evidence that corruption and the absence of economic freedom have a negative effect on national income.

Three Essays On Corruption And Collusion, Arlo Redwine

Graduate Theses and Dissertations

This dissertation studies corruption and collusion with data derived from a laboratory experiment and household data. In Chapter 1 I study experimental procurement auctions with bribery and a public reserve to test for the tacitly collusive equilibrium described by Compte et al. (2005). Three sellers compete for 40 periods to sell a single item to a computerized buyer who accepts bribes and determines ties in bids and bribes randomly. In the closing periods, only 13.5% of auctions display the collusive equilibrium, but 58.7% of selling prices are noncompetitive. In comparison with simulated predictions for auctions that are corrupt but competitive, …

Institutional Quality And Illicit Financial Flows In Developing And Developed Countries: An Empirical Assessment, Zin Kyaw Lin

Theses and Dissertations

This paper investigates the direct linkage between institutional quality and illicit financial flows (IFFs) of 47 developing and developed countries from the period of 2005 to 2014. Corruption and political stability are found to be correlated to the IFFs.

Perceived Corruption In Ukraine: A National Analysis Using Individual Level Data From 2012-2014, Cody X. Weglinski

Theses and Dissertations

This study examines the relationship of perceived corruption in Ukraine and the factors that influence that perception. In particular, this paper investigates the idea that an influential Russian presence affects the perception of governmental corruption amongst Ukrainian business owners and managers.

The Plough, Gender Roles, And Corruption, Gautam Hazarika

Economics and Finance Faculty Publications and Presentations

Cross-country empirical studies of corruption using ordinary least squares commonly find that nations in which women play a greater role in economic and public life suffer less corruption. This has been a controversial finding since measures of women’s participation in the economy and politics are likely endogenous. This study uses an aspect of national ancestral geography as a novel instrumental variable in the estimation of the true causal effects of gender upon corruption. It thereby finds that ordinary least squares estimates of the effects of gender upon corruption are biased. This conclusion is upheld in time-series fixed-effects estimation.

Katangale Or Kuba?: Development Assistance And The Experiences And Perceptions Of Local Corruption In Malawi, Sahai Burrowes

There is lively debate concerning the influence of development assistance (‘aid’) on corruption in recipient countries; however, to date, few studies have systematically examined the subject subnationally. This study estimates the association between sub-national aid levels and citizens’ perceptions and experiences of local corruption in Malawi. Overall, we find that individuals in districts receiving high amounts of aid are no more likely to view local leaders as corrupt than those in districts receiving lower amounts of aid. However, higher levels of aid are associated with more experiences of bribe solicitation. We also find evidence that aid channeled through NGOs may …

Does Financial Liberalization Increase Corruption?: Evidence From A Panel Analysis, Pranjal Sudhir Ghate

Senior Projects Spring 2018

This project investigates whether financial liberalization increases corruption on a global level. Arguments put forward by international institutions such as the World Bank and the IMF claim that financial globalization will reduce corruption. However, the experience of India suggests that opening up financial markets might have increased corruption. This project tests whether this experience is generalizable worldwide. I find evidence for the conjecture that financial liberalization increased corruption in a panel analysis using random effects and lagged independent variable.

Corruption And Soccer In Africa: Empirical Evidence On The Determinants Of Association Soccer Success In The Continent, Mustafa Zahid

Undergraduate Honors Theses

Despite the popularity of soccer in Africa, African teams tend to underperform in international competitions such as the World Cup relative to European and South American teams. Studies have been conducted on what determines performance in international soccer. These studies stress the importance of wealth, talent pool, and soccer culture on determining performance. However, these studies focus more generally on the entire world, and, in some instances, omit African nations due to a lack of data. Additionally, the focus on a wide sample of the world results in the omission of some potentially crucial variables in relation to Africa, specifically …

On Monetary And Non-Monetary Interventions To Combat Corruption, Ritwik Banerjee, Arnab Mitra

Economics Faculty Publications and Presentations

We study the relative effectiveness of extrinsic monetary disincentives and intrinsic non-monetary disincentives to corruption, using a harassment bribery game. In doing so, we also test the Beckerian prediction that at the same level of expected payoff, a low probability of detection with high fine is a stronger deterrent to corruption than a high probability of detection with low fine. In Experiment 1, two treatments are designed to study the effect of a low probability of detection with high fine and a high probability of detection with low fine, on bribe taking behavior. In Experiment 2, subjects participate in the …