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- Title
Investigating the Interaction Effect of Democracy and Economic Freedom on Corruption: A Cross-Country Quantile Regression Analysis.
- Authors
Saha, Shrabani; Jen-Je Su
- Abstract
This paper explores the interaction effects of economic freedom and democracy in controlling corruption for 100 countries by using quantile regression technique. The main contribution is to explore the interaction effects throughout conditional distribution of corruption across nations. Our results reinforce some findings in the literature, but also provide new conclusions. The findings suggest a stronger and significant interaction effect in reducing corruption, especially in the most-corrupt countries. However, democratic and economic freedoms alone may not cure corruption effectively in the most-corrupt nations, a sound democratic reform can eliminate corruption substantially only after achieving a threshold level of economic freedom.
- Subjects
DEMOCRACY; CORRUPTION; POLITICAL systems; REGRESSION analysis; ECONOMICS
- Publication
Economic Analysis & Policy, 2012, Vol 42, Issue 3, p389
- ISSN
0313-5926
- Publication type
Article
- DOI
10.1016/S0313-5926(12)50036-6