Factors Affecting Corruption in Developing and Emerging Countries
Chedraui, Jose Ernesto
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Economic and social indices of a country are becoming increasingly important in explaining a developing and emerging country’s level of corruption. Using a Control of Corruption indicator, explained by GDP per capita, we find evidence for corruption decreasing as GDP per capita increases in a simple regression model. Deeper analysis conducted by including the Human Development Index, and Social Progress Index demonstrates that there exists a stronger correlation between theses variables and corruption. While some variables (such as GDP per capita) lose significance in the multiple regression model, they still have an impact on corruption when regressed together. Consequently, corruption in developing and emerging countries is better explained when including HDI and SPI.