CEU eTD Collection (2011); Nikodinoska, Dragana: How is Corruption Affected by Global Integration? A Quantitative and Qualitative Analysis

CEU Electronic Theses and Dissertations, 2011
Author Nikodinoska, Dragana
Title How is Corruption Affected by Global Integration? A Quantitative and Qualitative Analysis
Summary Corruption, defined as the misuse of public office for private gains, is a great impediment to economic growth and development. International integration, in the form of increased trade, FDI, communications and organizational involvement, is likely to influence domestic corruption through three channels: economic, political and social. The hypothesis of this study is that higher level of international integration is related to lower national corruption. The relationship between corruption and globalization may be non-linear and this assumption is tested. In addition to international factors, the domestic determinants of corruption are also explored. Two different methodologies are used: multiple OLS regression and factor analyses. Empirical analyses of data from 182 countries strongly confirm the hypothesis, even after development level, regional effects, education, religion, democracy and other institutional characteristics and norms are controlled for. Corruption is found to be lower when integration is higher in the whole data set and among developed countries under the first methodology. The results from the second methodology also revealed that greater involvement in global networks of exchange, organization and communication is associated with lower abuse of public office for personal benefit. This is true for both developing and developed countries and the effect of international integration is stronger for developing countries. A case study of Macedonia as a transition and developing country further confirms that increased integration goes hand in hand with lower public office abuse.
Supervisor Ratfai, Aattila
Department Economics MA
Full texthttps://www.etd.ceu.edu/2011/nikodinoska_dragana.pdf

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