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Title
Does corruption throw sand into or grease the wheels of financial sector development?
AuthorSchneider, Friedrich ; Cooray, Arusha
Published in
Public Choice, 2018, Vol. 177, Issue 1-2, page 111-133
PublishedSpringer US, 2018
LanguageEnglish
Document typeJournal Article
Keywords (EN)Corruption / Financial sector / Panel data
URNurn:nbn:at:at-ubl:3-582 Persistent Identifier (URN)
DOI10.1007/s11127-018-0592-7 
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 The work is publicly available
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Does corruption throw sand into or grease the wheels of financial sector development? [0.87 mb]
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Abstract (English)

This paper examines the relationship between corruption and financial sector development in 106 countries. Using dummy variables to capture different levels of corruption, and interaction terms to see if financial sector development depends on institutional structures, we find evidence to support the ‘sand the wheels hypothesis. The results suggest that a decline in corruption is associated with higher levels of financial sector development.

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CC-BY-License (4.0)Creative Commons Attribution 4.0 International License