The interaction effect of economic freedom and democracy on corruption: a panel cross-country analysis

Saha, Shrabani, Gounder, Rukmani and Su, Jen-Je (2009) The interaction effect of economic freedom and democracy on corruption: a panel cross-country analysis. Economics Letters, 105 (2). pp. 173-176. ISSN 0165-1765

Full content URL: http://dx.doi.org/10.1016/j.econlet.2009.07.010

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Abstract

This paper examines the effects of economic freedom, democracy and its interaction term on controlling corruption. Interactive results indicate that economic freedom and democracy significantly combat corruption. Economic freedom reduces corruption in any political environment. Democracy increases corruption when economic liberalization is low. © 2009 Elsevier B.V. All rights reserved.

Keywords:Democracy, Economic freedom, Corruption, Panel data
Subjects:L Social studies > L100 Economics
Divisions:Lincoln International Business School
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ID Code:13345
Deposited On:14 Feb 2014 10:28

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