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CORRUPTION AND POLITICAL AND ECONOMIC REFORMS: A STRUCTURAL BREAKS APPROACH
Author(s) -
OLOFSGÅRD ANDERS,
ZAHRAN ZAKI
Publication year - 2008
Publication title -
economics and politics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.822
H-Index - 45
eISSN - 1468-0343
pISSN - 0954-1985
DOI - 10.1111/j.1468-0343.2007.00327.x
Subject(s) - democratization , liberalization , language change , equity (law) , economics , politics , economic reform , international economics , development economics , economic system , monetary economics , democracy , political science , market economy , art , literature , law
In this paper we look at the impact of broad policy reforms on the levels of corruption. We use a structural break approach to identify country‐specific time periods in which significant shifts in corruption levels take place. We then correlate these times of change with a set of covariates with specific focus on the impact of democratization, and trade and equity market liberalization. We find robust support for the hypothesis that episodes of reduction in corruption levels tend to be correlated with democratization and equity market liberalization.