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1 – 10 of over 1000Stijn Kuipers and Veerle Verhey
Corruption is widely considered as one of the primary bounds on economic growth. As a result, eradicating corruption takes top priority in development policy. Sadly, most anti…
Abstract
Corruption is widely considered as one of the primary bounds on economic growth. As a result, eradicating corruption takes top priority in development policy. Sadly, most anti-corruption efforts fail. In this policy brief, we explain why an overt focus on eradicating corruption is misguided. We address two problems. Firstly, there is insufficient proof that eradicating corruption is a necessity to kickstart or promote rapid economic growth, in contrast to a dominant view in development circles. An overt focus on combating corruption risks wasting funds in development policy. Secondly, most anti-corruption efforts in development fail because they treat the symptom instead of the root causes. Anti-corruption efforts can be improved by working much more holistically in development policy.
Our goal with this policy brief is to encourage those working in economic development to rethink their approach to anti-corruption. By highlighting relevant insights from the academic literature which have largely remained unrecognised in development policy, and adding concrete policy recommendations, we hope to spur change in the primacy which is often granted to anti-corruption efforts.
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Leticia Mahuwi and Baraka Israel
Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial…
Abstract
Purpose
Understanding the interplay between transparency, accountability and e-procurement and their collective contribution to anti-corruption efforts in public procurement is crucial for developing effective strategies and policies. This research seeks to investigate whether e-procurement plays a significant role in enhancing transparency and accountability and subsequently reducing corruption risks in the public pharmaceutical procurement system.
Design/methodology/approach
The study employed a cross-sectional questionnaire survey to gather data from 274 procurement personnel and pharmacists working in 28 government-owned hospitals in the Southern Highlands of Tanzania. The collected data were then analysed using confirmatory factor analysis (CFA) and the Hayes PROCESS macro to test the study hypotheses.
Findings
The study findings revealed a negative and significant relationship between transparency and procurement corruption (ß = −0.117, p < 0.008). Moreover, accountability negatively and significantly affects procurement corruption (ß = −0.162, p = 0.006). Furthermore, the findings indicate that, at a high degree of e-procurement system implementation, transparency and accountability have a stronger impact on procurement anti-corruption measures.
Practical implications
Policymakers and decision-makers should implement robust mechanisms that enhance transparency, accountability and anti-corruption efforts. These may include providing clear and accessible information on procurement processes, efficient mechanisms for monitoring and reporting procurement irregularities and continuous improvement of e-procurement systems. By incorporating these measures and nurturing collaboration amongst procurement stakeholders, it becomes possible to foster a procurement environment characterised by integrity, fairness, accountability and reduced corruption.
Originality/value
Whilst previous studies delved into exploring the effect of transparency and accountability on procurement anti-corruption, the novelty of this study is the inclusion of e-procurement as a moderating variable in the relationship between transparency, accountability and anti-corruption. By so doing, this study adds to the existing body of knowledge regarding anti-corruption measures and offers valuable practical insights for policymakers and professionals aiming to enhance transparency, accountability and ethical conduct within the public pharmaceutical procurement system.
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Recent developments in the EU’s anti-corruption strategy have brought the EU closer to meeting the UNCAC’s objectives, i.e. the Proposal for a Directive on combating corruption…
Abstract
Purpose
Recent developments in the EU’s anti-corruption strategy have brought the EU closer to meeting the UNCAC’s objectives, i.e. the Proposal for a Directive on combating corruption (2023) and the Proposal for a Directive on Asset Recovery and Confiscation (2022). This paper aims to discuss these developments from the perspective of the UNCAC, to identify missing elements in the EU’s asset recovery mechanisms.
Design/methodology/approach
Critical approach towards EU anti-corruption policy (discussing the problems and solutions). Review of EU developments in asset recovery law.
Findings
There is a political will on the part of the EU to fight corruption through the rules enshrined in the UNCAC. However, improving EU law by introducing a new type of confiscation of unexplained wealth and criminalising illicit enrichment, without establishing convergent rules for the return of corrupt assets from EU territory to the countries of origin, cannot be seen as sufficient action to achieve the UNCAC’s objectives. In modelling mechanisms of the return of assets, the EU should search for solutions to overcome the difficulties resulting from the ordre public clause remaining a significant factor conditioning mutual legal assistance.
Originality/value
This paper discusses the possible input of the EU, as a non-State Party to the UNCAC, to advance implementing the UNCAC solutions on asset recovery by establishing convergent rules for the return of corrupt assets from EU territory to countries of origin.
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Giang Ngo Tinh Nguyen and Xianmin Liu
This study explores the relationship between corruption and shadow economy (SE) by examining the potential links and interactions between these two phenomena to see whether it is…
Abstract
Purpose
This study explores the relationship between corruption and shadow economy (SE) by examining the potential links and interactions between these two phenomena to see whether it is a one-way or two-way relationship and a complementarity or substitution linkage.
Design/methodology/approach
Using a dataset comprised of 145 countries all over the world between 1996 and 2015, the authors apply the simultaneous two-step system generalized method of moments approach to address the research question.
Findings
The study findings support a positive bidirectional relationship between corruption and SE. As such, this study has provided evidence supporting the complementarity association. In the authors' further analyses, they point out that several factors can moderate this positive bidirectional linkage. In particular, while Foreign Direct Investment (FDI) inflows strengthen it, it is weakened by other institutional factors such as civil liberties and political rights. Finally, by splitting the full sample into three different subsamples and then examining countries at varying stages of economic development, the authors can gain valuable insights into the evolving dynamics of the relationship between corruption and SE. Specifically, while the authors observe that the positive direction of corruption to SE remains unchanged across different nations, they observe that the positive influence of SE on corruption is strongest among developed economies only.
Practical implications
The study findings provide an important policy implication. This study highlights the synergistic relationship between SE and corruption, indicating that reducing corruption will reduce the size of the SE. Consequently, this reduction in the SE can mitigate the adverse effects of corruption on economic development.
Originality/value
This paper is among the first empirical studies that critically investigate the interrelationship between SE and corruption. It then explores how this two-way linkage is conditional on some factors, such as economic development levels and institutional quality indicators.
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This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in…
Abstract
Purpose
This paper attempts to develop a simple, static model of tax administration that is capable of explaining the widespread collusive petty tax administration corruption observed in developing countries.
Design/methodology/approach
This paper utilizes a positivist research framework and adopts a theoretical method of analysis, although secondary data will also be mentioned to support theoretical arguments whenever it is appropriate to do so.
Findings
A high rate of collusive tax corruption is inevitable in developing countries.
Research limitations/implications
The model is static and needs to be extended into a dynamic model.
Practical implications
Traditional enforcement tools such as higher audits or a higher penalty regime against tax evasion do not work. Tax simplification can lessen the incidence of tax corruption.
Social implications
Fighting tax corruption requires significant changes in the attitudes of taxpayers and tax auditors.
Originality/value
This paper combines the literature on Kantian economics and tax compliance in an innovative fashion.
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Beatrice D. Simo-Kengne and Siphiwo Bitterhout
The theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS…
Abstract
Purpose
The theoretical debate of corruption's impact on economic growth remains unsettled, making it an empirical question. This study aims to investigate corruption's effect on BRICS countries' economic growth.
Design/methodology/approach
A panel dataset on BRICS countries spanning 1996 to 2020 was used. Bias-corrected estimators in small dynamic panels were employed to estimate a growth model as a linear-quadratic function of corruption that accounts for cross-sectional dependence, endogeneity and unobserved heterogeneity due to country and time-specific characteristics.
Findings
The results indicate that corruption is detrimental to economic growth in BRICS countries; the quadratic relationship implies corruption is less prevalent in some countries than others. Thus, governments of BRICS countries are encouraged to embark on anti-corruption policies to boost their economic performance.
Originality/value
An important limitation of corruption studies is the difficulty in measuring real corruption experiences due to the secretive nature of corruption and the fact that corruption is known not to leave a paper trail. For the uncertainty of the index estimates, the analysis used a continuous corruption composite score measuring the standard deviation of the extent to which public power is exercised for public gain. Furthermore, estimation and inference are robust to small dynamic panels with a general form of cross-sectional dependence.
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Fabio Monteduro, Giuseppe D'Onza and Riccardo Mussari
Corruption is a major social problem, and scholars have devoted considerable attention to this phenomenon. However, less attention has been paid to how corruption spreads among…
Abstract
Purpose
Corruption is a major social problem, and scholars have devoted considerable attention to this phenomenon. However, less attention has been paid to how corruption spreads among organizations and what factors can make its spread more likely. This study aims to fill the gap by modelling corruption as an interorganizational contagion.
Design/methodology/approach
The authors used social contagion theory to model corruption as an interorganizational contagion, influenced by the susceptibility of organizations and the strength of contagion sources. The study analysed 736 medium and large Italian municipalities over a five-year period, with 3,146 observations (excluding missing data). The authors conducted a longitudinal analysis using panel logistic regression techniques and performed robustness and endogeneity checks through a dynamic panel data model.
Findings
The authors found that municipalities with a higher percentage of corrupt neighbouring municipalities were more likely to experience corruption. The probability of experiencing corruption was also significantly higher for municipalities with weaker organizational resistance to corruption contagion.
Originality/value
Previous studies have not clearly explained the organizational mechanisms behind the spread of corruption at the interorganizational level. The study suggests that corruption contagion at the municipal level occurs via reduced uncertainty in decision-makers and is influenced by the prevalence of corruption locally. The spread can be driven by conscious or unconscious mechanisms. This study challenges the idea that corruption contagion is immediate and inevitable. Organizational resistance to corruption can affect the risk of contagion, highlighting the importance of anti-corruption controls and ethical systems in preventing it.
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The lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by…
Abstract
Purpose
The lack of transparency contributes to the growing corruption problem in various spheres of society. This paper aims to analyse the sustainability report disclosures published by Czech companies in 2021 and registered by the Association of Social Sustainability of the Czech Republic.
Design/methodology/approach
Based on three hypotheses, the relationships between the level of disclosed anti-corruption information and selected variables related to the corporate environment are tested using content analysis and the Mann–Whitney test.
Findings
This paper reveals that Czech firms provide more information if they operate in a higher-risk environment (energy, materials and financial services) or are state-owned (or with a state ownership stake). It also reveals that companies participating in corporate social responsibility (CSR) initiatives (UN Global Compact and Global Reporting Initiative) increase their credibility and social responsibility with more disclosed information.
Research limitations/implications
A limitation of this paper is the smaller number of selected companies matching the chosen criteria. In addition, a certain degree of subjectivity is likely to have manifested in the process of coding the reports and in the use of the content analysis method.
Originality/value
The paper contributes to research that addresses the fight against corruption and CSR issues with a specific study in a small, Central European country and provides new empirical data on the anti-corruption fight problem.
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Pietro Previtali and Paola Cerchiello
In recent years, the role of environmental, social and governance (ESG) disclosure has become crucial. The aim of this paper is to study how corporate governance affects one part…
Abstract
Purpose
In recent years, the role of environmental, social and governance (ESG) disclosure has become crucial. The aim of this paper is to study how corporate governance affects one part of ESG disclosure: anti-corruption disclosure.
Design/methodology/approach
This study examined 140 corporate social responsibility (CSR) reports from companies listed on the Italian stock markets and 50 CSR reports from other companies, then this study analysed the adoption of the Global Reporting Initiative (GRI) standard no. 205.
Findings
The results show a low level of disclosure, and that corporate governance issues matter. In particular, the analysis found a positive relationship between the presence of female and outside members, the number of board members and the level of anti-corruption disclosure.
Research limitations/implications
This study acknowledges some limitations. Firstly, the research is based on a one-year sample. Secondly, the research hypotheses are confirmed only when considered in relation to a single section of the GRI standards. Thirdly, this study has a bias towards relatively large enterprises.
Practical implications
It could be worthwhile introducing a soft regulation regarding the composition of the board of directors that requires a certain quantitative and qualitative composition.
Originality/value
To the best of the authors’ knowledge, this is one of the few studies, the first in Italy, that sheds light on anti-corruption disclosure and its determinants.
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Arielle Beyaert, José García-Solanes and Laura Lopez-Gomez
This paper aims to apply regression-tree analysis to capture the nonlinear effects of corruption on economic growth. Using data of 103 countries for the period 1996–2017, the…
Abstract
Purpose
This paper aims to apply regression-tree analysis to capture the nonlinear effects of corruption on economic growth. Using data of 103 countries for the period 1996–2017, the authors endogenously detect two distinct areas in corruption quality in which the members share the same model of economic growth.
Design/methodology/approach
The authors apply regression tree analysis to capture the nonlinearity of the influences. This methodology allows us to split endogenously the whole sample of countries and characterize the different ways through which corruption impacts economic growth in each group of countries.
Findings
The traditional determinants of economic growth have different impacts on countries depending on their level of corruption, which, in turn, confirms the parameter heterogeneity of the Solow model found in other strands of the literature.
Originality/value
The authors apply a new approach to a worldwide sample obtaining novel results.
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