Corruption and government revenue: Evidence of a non-linear relationship driven by crises
ABSTRACTA large body of literature studies the relationship between corruption and economic outcomes, including government revenue mobilization, but there is little evidence on how this relationship changes during times of crisis. Using a comprehensive panel dataset covering up to 194 countries in t...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Journal of Applied Economics |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/15140326.2023.2295733 |
| _version_ | 1797382427258126336 |
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| author | Željko Bogetić Dominik Naeher |
| author_facet | Željko Bogetić Dominik Naeher |
| author_sort | Željko Bogetić |
| collection | DOAJ |
| description | ABSTRACTA large body of literature studies the relationship between corruption and economic outcomes, including government revenue mobilization, but there is little evidence on how this relationship changes during times of crisis. Using a comprehensive panel dataset covering up to 194 countries in the period 1996 to 2020, we find evidence of a negative link between corruption and revenue that is amplified in times of crisis. The amplification appears to be driven by countries with lower average income levels, non-democratic governments, and higher natural resource dependency. Our findings are helpful in assessing different views of corruption offered in the literature. Overall, we find our results to be more consistent with a rent seeking view of corruption whereby, in times of crisis, corruption becomes more pervasive and government revenue declines. In contrast, we find no empirical support for the view that crises represent times of social improvement associated with increases in revenues. |
| first_indexed | 2024-03-08T21:06:13Z |
| format | Article |
| id | doaj.art-22d3122a08414d53a66e13049022449e |
| institution | Directory Open Access Journal |
| issn | 1514-0326 1667-6726 |
| language | English |
| last_indexed | 2024-03-08T21:06:13Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Journal of Applied Economics |
| spelling | doaj.art-22d3122a08414d53a66e13049022449e2023-12-22T13:03:23ZengTaylor & Francis GroupJournal of Applied Economics1514-03261667-67262024-12-0127110.1080/15140326.2023.2295733Corruption and government revenue: Evidence of a non-linear relationship driven by crisesŽeljko Bogetić0Dominik Naeher1Macroeconomics, Trade and Investments (MTI) - Middle East and North Africa (MENA), World Bank Group, Washington, DC, USADepartment of Development Economics, University of Goettingen, Goettingen, GermanyABSTRACTA large body of literature studies the relationship between corruption and economic outcomes, including government revenue mobilization, but there is little evidence on how this relationship changes during times of crisis. Using a comprehensive panel dataset covering up to 194 countries in the period 1996 to 2020, we find evidence of a negative link between corruption and revenue that is amplified in times of crisis. The amplification appears to be driven by countries with lower average income levels, non-democratic governments, and higher natural resource dependency. Our findings are helpful in assessing different views of corruption offered in the literature. Overall, we find our results to be more consistent with a rent seeking view of corruption whereby, in times of crisis, corruption becomes more pervasive and government revenue declines. In contrast, we find no empirical support for the view that crises represent times of social improvement associated with increases in revenues.https://www.tandfonline.com/doi/10.1080/15140326.2023.2295733Corruptioncrisisgovernment revenuerent seeking |
| spellingShingle | Željko Bogetić Dominik Naeher Corruption and government revenue: Evidence of a non-linear relationship driven by crises Journal of Applied Economics Corruption crisis government revenue rent seeking |
| title | Corruption and government revenue: Evidence of a non-linear relationship driven by crises |
| title_full | Corruption and government revenue: Evidence of a non-linear relationship driven by crises |
| title_fullStr | Corruption and government revenue: Evidence of a non-linear relationship driven by crises |
| title_full_unstemmed | Corruption and government revenue: Evidence of a non-linear relationship driven by crises |
| title_short | Corruption and government revenue: Evidence of a non-linear relationship driven by crises |
| title_sort | corruption and government revenue evidence of a non linear relationship driven by crises |
| topic | Corruption crisis government revenue rent seeking |
| url | https://www.tandfonline.com/doi/10.1080/15140326.2023.2295733 |
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