DOC PREVIEW
Corruption

This preview shows page 1-2-3-18-19-36-37-38 out of 38 pages.

Save
View full document
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
View full document
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience
Premium Document
Do you want full access? Go Premium and unlock all 38 pages.
Access to all documents
Download any document
Ad free experience

Unformatted text preview:

Figure 2-1Figure 3-1 Model of Inequality, Trust, Corruption, and Effective GovernmentTable 3-1Simultaneous Equation Estimation of Corruption Variable Coefficient Standard Error t ratioCorruption equationTrust (imputed) 5.810**** 1.612 3.60Regulation of business .933*** .358 2.60Fairness of legal system .626*** .211 2.96GDP per capita (ICRG) .405*** .156 2.60 Ethnic fractionalization (Alesina) 1.256 .573 2.19Restrictions on conversions minority religions -.483** .280 -1.73Freedom House 2003 democratization -.426 .327 -1.30Constant -.482 .773 -.62Trust equationEconomic inequality (Gini index) -.515*** .191 -2.70Civil war -.091**** .025 -3.62Protestant share of population 1980 .200**** .059 3.40Former Communist nation -.110*** .042 -2.60Government effectiveness .014 .021 .68Constant .502**** .075 6.70Regulation equationFairness of legal system .239*** .082 2.91Openness of economy to trade .229*** .092 2.48Real growth in gross domestic product -.083 .068 -1.21Overall country risk (ICRG) -.014**** .003 -4.71Constant .378 .848 .44Table 3-1 (continued)Simultaneous Equation Estimation of Corruption Inequality equationTrust (imputed) -.135 .190 -.71Corruption -.028*** .009 -3.26Former Communist nation -.163**** .026 -6.38Protestant share of population 1980 .119 .052 2.28Muslim percent of population -.001**** .000 -3.70Constant .575**** .036 15.76Overall risk equationEconomic inequality (GINI) 31.580 25.424 1.24Corruption -8.378**** .958 -8.74Internal conflicts (ICRG) 7.066**** 1.500 4.71 Ethnic tensions (ICRG) 3.898*** 1.628 -2.39 Constant 168.766**** 15.924 10.60Government effectiveness equationTrust (Imputed) .761 .946 .80 Corruption .498**** .064 7.80Ethnic tensions (ICRG) -.093** .047 -2.00Poverty level 2005 (ICRG) -.355**** .090 -3.94Former Communist nation -.397*** .144 -2.76Constant -1.425**** .227 -6.28* p < .10 ** p < .05 *** p < .01 **** p < .0001 (all tests one tailed except for constants)Table 3-1 (continued)Summary of ModelsEquation R S.E.E. Mean F Statistic2Corruption .900 .855 5.276 68.51Trust .653 .081 .299 19.73Regulation of business .818 .392 .624 65.95Inequality (Gini) .518 .072 .358 11.27Overall risk (ICRG) .850 13.756 50.839 80.57GovernmentEffectiveness.835 .428 .158 54.91N = 62Instrumental variables: Religious fractionalization (from Alesina, Devleeschauwer, Easterly, Kurlat, andWacziarg, 2003); English legal tradition (from the Levine-Loyaza-Beck data set athttp://www.worldbank.org/research/growth/llbdata.htm ), GNP per capita (State Failure Data),constraints on the executive branch of government (Glaeser, La Porta, Lopez-de-Silanes, andShleifer, 2004); military in politics (at www.freetheworld.com ); terrorism risk (ICRG);bureaucratic quality (ICRG), parliamentary system and proportional representation (from theData Base of Political Institutions athttp://www.worldbank.org/wbi/governance/pubs/wps2283.html )Table 3-2Summary of Regressions for Government Effectiveness and CorruptionN Government Effectiveness CorruptionVariable Coefficient Std. Error t Ratio Coefficient Std. Error t RatioGrowth competitiveness ranking 2003 (WEF) 75/76 -9.493**** 1.794 -5.29 -14.358**** 2.358 -6.17Tax compliance (WEF) 45 .095** .055 1.72 .226** .131 1.74Expropriations risk 1982-97 (Glaeser et al., 2004)+ 64/66 .785**** .201 3.90 1.169**** .181 6.47Market capitalization (LaPorta, et al., in press)+ 43 .111* .073 1.53 .113** .042 1.91Markets open to small/medium firms (LaPorta, et al., in press)+ 40 .592**** .128 4.61 .427*** .123 3.47Index of state owned enterprises (LaPorta et al., 1999) 35 .443* .279 1.59 .653** .274 2.39Government consumption/GDP (freetheworld.org) 72/74 -.581*** .203 -2.86 -.802*** .305 -2.63Good labor-management relations (WEF) 70 .365**** .089 4.12 .320** .155 2.07How ethical are business firms (WEF) 81 .602**** .044 13.83 .887**** .070 12.61Executives involved in chariTable causes (WEF) 68 .106**** .031 3.31 .252**** .080 3.75Satisfied with state of environment (Gallup Millennium) 49 .187**** .036 5.18 .167**** .040 4.17Education spending (LaPorta et al., 1999) 43 .437*** .172 2.54 .663*** .205 3.24 Education Gini 1990 (Thomas, Wang, Fan, 2001) 47/48 -.030* .022 -1.39 -.065**** .019 -3.35Education standard deviation (Lederman)++ 60/62 -.002 .027 -.06 -.087*** .035 -2.48Secondary school enrollment (UN Development Program) 70/75 .021 2.056 .01 7.752*** 2.648 2.91Public health expenditures (UN Development Program) 74/81 .206 .217 .95 .770*** .254 3.04Transfer payments (LaPorta et al., 1999) 55/56 2.520*** .930 2.71 4.502**** .919 4.90UN Human Development Index (UN Development Program) 76/69 .008 .015 .54 .069**** .016 4.32 * p < .10 ** p < .05 *** p < .01 **** p < .0001 + estimated by 2SLS with instrumental variables ++ data provided by Daniel Lederman, World Bank Bold outcomes: corruption inpact stronger; italicized outcomes: effectiveness outcome stronger. Corruption index standardized.Table 3-3Summary of Models for Variables Shaped by Corruption and Effective GovernmentVariable N Other Variables in the Model and Significance (Corruption, Effectivenss) R2Growth competitiveness ranking 2003 (WEF) 75/76 Openness of economy (**, **), regulation of business (-, ****, ****) .85, .86Tax compliance (WEF) 45 Informal sector (-, ***, **), English law tradition (***, ***), education (NS, **) .67, .50Expropriations risk 1982-97 (Glaeser et al., 2004) 64/66 Informal sector (-, NS, ***), Gini index (-,***, ***) .67, .69Market capitalization (LaPorta, et al., in press) 43 Ease of starting new business, freetheworld.org (**, ***) .50, .52Markets open to small/medium firms (LaPorta, et al., in press) 40 Courts have independent procedural powers, LaPorta et al. (2003) (****, ***) .73, Index of state owned enterprises (LaPorta et al., 1999) 35 Rightist parliament (***,***), East bloc (-.**,**). ethnic polarization (NS, NS) .49, .44Government consumption/GDP (freetheworld.org) 72/74 GDP per capita PPP (-,**,****), East bloc (-, ****, **) .50, .51Good labor-management relations (WEF) 70 Ethnic tensions (-, NS, *), union density (NS, **), business regulation (-,NS, *) .44. .51How ethical are business firms (WEF) 81 Legal fairness (NS, ****), ethnic tensions (NS, *), East bloc (-,**, **) .87, .86Executives involved in chariTable causes (WEF) 68 East bloc (-,****,****), Jewish share population (****,****) .48, .51Satisfied with state of environment (Gallup Millennium) 49 Openness of economy (***, ***), government run by will of


Corruption

Download Corruption
Our administrator received your request to download this document. We will send you the file to your email shortly.
Loading Unlocking...
Login

Join to view Corruption and access 3M+ class-specific study document.

or
We will never post anything without your permission.
Don't have an account?
Sign Up

Join to view Corruption 2 2 and access 3M+ class-specific study document.

or

By creating an account you agree to our Privacy Policy and Terms Of Use

Already a member?