Strengthened rule of law to reduce corruption: evidence from Asia-Pacific countries

Abstract

Purpose

Rule of law is essential in reducing corruption in a country. This study aims to investigate the factors contributing to corruption in 41 of the most competitive countries in the Asia-Pacific region by focusing on judicial effectiveness, property rights and government integrity. The moderating role of regulatory quality was also considered in the attempt to explain the association among rule of law and corruption.

Design/methodology/approach

This study used pooled ordinary least squares regression and generalized method of moments-dynamic panel for the robustness test on data of 41 Asia-Pacific countries spanning from 2013 to 2021.

Findings

Property rights and government integrity were found to be negatively significant in explaining corruption. In contrast, the interaction between rule of law and regulatory quality had a significant positive association with corruption. The findings bring to light Asia-Pacific countries’ need for more effective control of corruption.

Practical implications

The authorities should work towards enhancing the countries’ image as corruption-free nations by creating a stable economic and political environment and preserving macroeconomic stability through strengthened rule of law.

Originality/value

Previous research looked at The Association of Southeast Asian Nations and South Asian countries, but little attention was given to Asia-Pacific countries in examining the relationship between rule of law and corruption.

Citation

Mohd-Rashid, R., Mehmood, W., Ooi, C.-A., Che Man, S.Z. and Ong, C.Z. (2023), "Strengthened rule of law to reduce corruption: evidence from Asia-Pacific countries", Journal of Money Laundering Control, Vol. 26 No. 5, pp. 989-1006. https://doi.org/10.1108/JMLC-06-2022-0076