Are performances in Governance Indicators Complementary to Corruption Abatement?

Abstract

Private use of public office for private gain could be a tentative connotation of corruption and most distasteful event of corruption is that it is not there, nor that it is pervasive, but it is socially acknowledged in the global economy, especially in the developing nations. In the present paper we attempt to assess the interrelationship between the Corruption perception index (CPI) and the principal components of governance indicators as per World Bank Governance Indicators like Control of Corruption (CC), Rule of Law (RL), Regulatory Quality (RQ) and Government Effectiveness (GE). Applying Granger Causality Test the study observes a mixed or inconclusive result. Only bilateral causal link between the CPI and CC works for UK, whereas there are unilateral causal links between the CPI and one or more governance indicators working for other countries for France, Japan, China, India, Thailand and South Africa. In no way causalities are observed for USA, Germany and Brazil.

Keywords: {'name': 'CPI'}, {'name': 'Governance'}, {'name': 'Granger'}, {'name': 'Correlation'}, {'name': 'Regression'}

Authors & affiliations

Kamal Ray
Affiliation not supplied

Ramesh Das
Affiliation not supplied

Deposited references

Supplied references, not a list of publications citing this article.

DOI: 10.1257/aer.91.5.1369

Adeb, G.T. & Gupta, S. (Eds) (2002).Governance, Corruption and Economic Performance, IMF, Washington, D.C

BEEPS (2008-2009).The Business Environment and Enterprise Performance Survey, published by The World Bank.

DOI: 10.1016/B978-0-12-598226-9.50014-8

Chetwynd, E., Chetwynd, F. & Spector, B. (2003). A Review of Recent Literature, Final Report, Management Systems International, Washington, DC

Donchev,D & Ujhely, G. (2007). Do Corruption Indices measure Corruption? , Working Paper, Economics Department, Harvard University, March 25

Duncan, N. (2006). The Non-Perception based Measurement of Corruption: A review of Issues and Methods from a Policy Perspective in measuring Corruption, Edited by J.G. Sampford, UK, Ashgate Publishing.

EBRD (1999). European Bank for Reconstruction and Development: Ten years of Transition, London

Emery, J. J. (2003). Global forum on International Investment, Johannesburg , South Africa, Government of South Africa, Encouraging Modern Governance and Transparency for Investment: Why and How? 17-18 November

Francisco – Javier, U. (2007). Assessing Corruption An analytical review of Corruption measurement and its problems: Perception, Error and Utility, Edmund A. Walsh School of Foreign Service, Georgetown University

DOI: 10.2139/ssrn.194628

DOI: 10.1111/j.1468-0343.2005.00146.x

DOI: 10.2307/1912791

Guhan, S. & Paul, S. (1997). Corruption India: Agenda for Action, Vision Books, Delhi

DOI: 10.1596/1813-9450-2312

Kauffman, D., A. Kraay & Zoido-Lobaton (1999a). Governance matters, World Bank policy working paper no. 2196, World Bank, Washington DC

DOI: 10.1596/9576

DOI: 10.2139/ssrn.188548

DOI: 10.2139/ssrn.961624

Lambsdroff, J.G. (2006). The Validity and Precision of Subjective Indicators: The Corruption Perception Index in Measuring Corruption, Edited by J.G. Sampford, UK, Ashgata Publishing

DOI: 10.2307/2946696

Olkan, B. (2006). Corruption perception vs Corruption Reality, NBER working paper No. 12428 Rigobon, R & Rodrik, D. (2004). Rule of Law, Democracy, Openness and Income: Estimating Interrelationships, NBER Working paper No.10750

Paul, S. (1997). Corruption: Who will bell the Cat? Economic and Political Weekly, 7 June